TSMC and Foxconn see September slowdown thanks to iPhone X Face ID delays
Foxconn and TSMC reported annual revenue declines for the month of September. Both supply parts or services to Apple for the sake of its iPhones and this, in this particular rut, the iPhone X. In an ideal world where the companies would be pushing full throttle to keep up with demand, the two have been held up waiting for one component to come through.
That component is the TrueDepth camera system that allows for features like Face ID and Animoji. Production of the camera, which is made up of a dot transmitter codenamed “Romeo” and a dot receiver named “Juliet,” has run into problems, though an anonymous executive source to Nikkei Asian Review claims that the source of which has not been found.
Through StreetInsider.com, we learn that Rosenblatt analyst Jun Zhang believes that in spite of this ongoing trouble, Apple has been able to boost iPhone X yields to 400,000 units per week. That’s compared to KGI Securities’s estimate of about 70,000 per week in September.
Foxconn has more to lose on the iPhone X than the iPhone 8 and iPhone 8 Plus as it is the sole assembler of the more expensive device. It shares works for building the latter two with competitors Pegatron and Wistron. TSMC provides the same A11 Bionic chip for all three phones. Makers of other components, though, did well last month. Camera producer Largan, chassis builder Catcher and touch panel provider TPK all saw major gains from last September.
The general bet is that mass production for the iPhone X will begin in the next week or so. Pre-orders begin October 27 and sales are scheduled to begin November 3.