Apple's latest iPhone models are struggling due to weak demand, but two major Asian suppliers picked up the slack and posted strong sales last month.
The iPhone XS and the iPhone XR can't generate significant sales. The mobile industry appears to be oversaturated, and consumers are hanging onto their smartphones longer than ever before. Still, that hasn't hurt two of Apple's longtime partners. Foxconn and Taiwan Semiconductor Manufacturing Company, according to Bloomberg, were able to generate a 5.6% rise in revenue during November. Both work with additional companies, too.
Meanwhile, other suppliers are downgrading sales estimates. It's a surprise since the last few months of the year are typically strong across the board, but Apple's flagship duo hasn't met expectations.
There might be another set of reduced orders for the iPhone XS and the iPhone XR if demand fails to turn around, and that could do damage on Foxconn's and TSMC's bottom lines.
Don't be too worried about Apple, though. In Cupertino, Tim Cook and high-ranking executives are unlikely to be too worried at the moment. Apple has plenty of cash on-hand, and its services generate a huge amount of revenue every quarter. Moving forward, Apple will continue leaning on services rather than hardware due to oversaturation in most categories.
Also, maybe it's the best time to purchase a new iPhone. Apple's running a trade-in promotion on the iPhone XS and the iPhone XS where, in exchange for your old iPhone, you'll get a steep discount.
It'll be interesting to see how Apple's Q4 2018 earnings report looks. Although unit sales are no longer part of the details, Apple should still discuss the trends for its entire lineup of hardware.
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