What you need to know
- The iPhone 12 has helped Apple supplier TSMC post record quarterly revenue figures.
Apple's main chip supplier TSMC has posted record revenues in Q4 of 2020, driven by strong iPhone 12 demand.
Taiwan Semiconductor Manufacturing Co. reported record quarterly revenue, joining other Apple Inc. suppliers in signaling strong demand for the new 5G iPhones. The world's largest contract chipmaker said Friday that December sales totaled NT$117.4 billion ($4.2 billion). Revenue in the quarter reached a record NT$361.5 billion, according to Bloomberg News's calculations based on previously released monthly sales figures. That came in slightly below the average estimate of NT$364 billion, which had risen in past months as expectations around the iPhone grew.
As Bloomberg notes, TSMC's shares are up 70% over the course of the year, reaching a record high on January 8. TSMC's revenue for the quarter was up roughly 25% in 2019.
The news reflects numerous reports in recent months stating that demand for the iPhone 12 has surpassed everyone's expectations. Apple has reportedly had to shift production from its iPad to the iPhone in order to keep up with demand, and reports state it plans to increase iPhone production by as much as 30% in 2021. From that report:
A new report says that a surge in demand for Apple's iPhone 12 will push the company to make 96 million iPhones in the first half of 2021, a 30% increase year-on-year.
From Nikkei Asian Review:
Apple plans to produce up to 96 million iPhones for the first half of 2021, a nearly 30% year-on-year increase, after demand for its first-ever 5G handsets surged amid the pandemic, Nikkei Asia learned.