Successful sales of the iPhone 7 has helped Taiwan’s TSMC to record profit
Net profit, Taiwan Semiconductor Manufacturing (TSMC) collector processor for iPhone 7 and iPhone 7 Plus – in the III quarter of 2016 increased by 28 percent to 96.8 billion new Taiwan dollars ($3 billion) compared to the same period last year, shows the report of the company for the last quarter.
The index rose to a record level, with a result that surpassed market expectations, as demand for chips for the iPhone 7 and iPhone 7 Plus has spurred the growth in production, analysts say. Experts interviewed by Thomson Reuters and Eikon, predicted profit at the level 95.2 billion new Taiwan dollars.
The previous record quarterly profit TSMC was installed in the fourth quarter of 2014 at the level of 80 billion new Taiwan dollars.
TSMC’s revenue in July-September increased by 22.5% to 260,4 billion new Taiwan dollars, above its own forecast ranging from 254 billion to 257 billion new Taiwan dollars. In dollar terms revenue was up 19.8% compared with the previous quarter and by 23% by the third quarter of 2015 to $8,20 billion.
TSMC predicts that fourth quarter revenue will be in the range from 255 billion to 258 billion new Taiwan dollars (i.e., above the forecast of 243,4 billion), gross margin — 50,5-52,5%, operating profit margin — 40-42%.
TSMC is called the barometer of sales of the iPhone, since its chips are used in new generation Apple smartphones. Improvement of financial indices of the company is considered as a positive sign for Apple. In addition to the iPhone maker among the three largest TSMC customers include Qualcomm and MediaTek.