Apple Supplier AMS, maker of Face ID Sensors, Reports a 10 Fold Increase in Demand and Forecasts a strong 2018
On January 23 Patently Apple posted a report titled "Apple's iPhone X was the Worlds #1 Shipping Smartphone Model over the Holiday Quarter with 29 Million Units." Considering that sales only began in November, and slowly at that, the iPhone X still rose to the top of the charts. Apple also had one less week in the quarter than last year and so the press stating that Apple's iPhones were down 1% from last year was deceitful. If Apple would have had the same amount of weeks in the quarter this year Apple would have clearly shown growth. Apple also bucked the downward trend for smartphone shipments in China that fell 14%. So this myth that Apple iPhones sales were disappointing is just for the sake of headlines. Today we're learning that strong iPhone X sales delivered a big win for Apple supplier AMS.
On January 29 Patently Apple posted a report wherein we noted that Apple supplier "AMS AG shares rose by 26 percent after the Austria-based electronic chip maker raised its revenue outlook on rising demand for its sensors from smartphone makers such as Apple, beating analyst forecasts.The increase will likely allay concerns that weak iPhone X orders are likely to persist through the first half of 2018."
Today Reuters is repeating the news on this story with more details. The report adds that the chipmaker AMS forecast a strong 2018 after reporting a more than tenfold increase in fourth-quarter profit, driven by increasing demand for sensors it makes for the latest Apple iPhones and other smartphone producers.
The Austrian company also said it expected to receive around $150 million from an unidentified customer to support a ramp up production, helping to send its shares as much as 13 percent higher in early Tuesday trading.
AMS supplies optical sensors that play a key role in facial recognition features that are one of the most distinctive features of Apple's flagship iPhone X, which was introduced late last year and appears to have helped power AMS's own results.
Apple accounted for about 40 percent of AMS's sales in 2017, Baader analyst Guenther Hollfelder estimated, forecasting that percentage could reach around 60 percent in 2018."
Speculation is that the "unidentified customer" making the huge investment in the company is Apple so as to enable AMS to keep their key sensor supplies in line with Apple's future needs.
Beyond the positive news from AMS, Analytical companies reported extensively on how well Apple's iPhones were selling compared to their competitors. Without the negative spin of the press, real facts have shown Apple's iPhone sales were strong across the board as noted in the reports noted below.
One: iPhone takes the Smartphone Crown for the Christmas Quarter
Two: Apple Breaks U.S. Record in Q4 for iPhone Sales and Market Share with iPhone X doubling iPhone 8 Sales
Three: December Stats show iPhone X was #1 in Urban China and in the top three best-selling Devices in Europe, Japan & U.S.
Four: Apple's iPhone X was the Worlds #1 Shipping Smartphone Model over the Holiday Quarter with 29 Million Units
Five: Apple overtakes Xiaomi in Smartphone sales in China in Q4 as Smartphone Growth in that Country begins to Slow
Six: For the month of November, Apple recorded its best ever iPhone sales in a single month in the USA
Apple's CEO also reported on February first that Phone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November.
Cook further noted in his quarterly summary that "iPhone 8 and iPhone 8-Plus rounded out the top three iPhones in the quarter. In fact, revenue for our newly launched iPhones was the highest of any line-up in our history driving total Apple revenue above our guidance range."
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