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What's going on?

TSMC has some good news to share with Apples investors: the chipmaker reported strong December sales on Friday.

What does this mean?

TSMC counts Apple as one of its biggest customers, so the chipmakers 14% increase in sales from the same time last year isnt just encouraging news for its own investors: the boost suggests the latest iPhones are flying off the (virtual) shelves too (tweet this). It wasnt Apples only supplier to give a promising update last week either: iPhone assembler Hon Hai Precision Industry reported better-than-expected revenue in December, while Dialog Semiconductor a rival chipmaker to TSMC upped its fourth-quarter sales outlook after stronger-than-expected demand for Apples 5G tech.

Why should I care?

For markets: Theres no I in iPhone.


Signs of high iPhone demand were a welcome arrival for Apples investors, especially after the companys earnings update in October fell short on that front. It was particularly encouraging because theyre the first real indication of how the newest iPhone is performing: its delayed launch meant its sales werent included in the update, and the company didnt offer any hints as to how it was selling. TSMCs announcement, then, might put investors minds at rest, sending them into Apples next earnings release which takes place at the end of this month with a bit more confidence.



The bigger picture: The doctor wont see you now.


The outlook for the microchip industry is pretty positive overall so much so that chipmakers havent been able to scale up from the pandemic-induced slump quickly enough. Carmakers are reportedly having to slow down production because there arent enough chips to go around, and since they dont pay nearly as handsomely as the likes of Apple, theyll have to wait their turn

Originally posted as part of the Finimize daily email.

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