Apple News+ Circulation Data, Goertek Runs Into AirPods Pro Trouble, The Case for Foxconn (Daily Update)
We begin today’s update with new data/estimates regarding circulation data for magazines that are part of Apple News+. The discussion then turns to Apple’s contract manufacturers. There was one follow-up from yesterday’s update worth pursuing regarding Foxconn. We look at Goertek running into trouble assembling AirPods Pro and how the news points to a broader truth found in doing business with Foxconn.
Hello everyone. It looks like we have some Project Titan news to discuss. Given the timing, we will do that tomorrow.
In today’s update, there was one follow-up worth pursuing regarding Foxconn. We will begin though with Apple News+.
Apple News+ Circulation Data
It’s been a while since we last talked about Apple News. The service launched in September 2015 with Apple News+ launching in March 2019. Audio was introduced in mid-2020.
Back in April 2020, Apple disclosed that Apple News had 125M monthly active users. The figure likely reflected a usage boost due to the pandemic. Clicking on an Apple News story in Today View, which continues to be a value-add proposition, brings you to the Apple News app. This is likely where many of the 125M Apple News users originate. With no subsequent updates to that user figure, we can assume it hasn’t change by much. It is a very high number given that Apple News availability is still limited to a handful of countries.
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Foxconn Hints at Robust iPhone Demand, Google Pulls Plug on Stadia, Zillow Adopts Apple Maps Look Around (Daily Update)
Hello everyone.
One quick clarification regarding yesterday’s story about Tesla deliveries.
I wrote: "More attention will be placed on the year-over-year growth in [Tesla] deliveries. If that figure continues to slow, the number of demand questions will rise."
One of those questions would include whether or not the slowdown in Tesla deliveries is tied to production headwinds. This is why it will be important to monitor how Tesla is performing in terms of build rates at existing factories and building new production facilities around the world.
Today’s update will focus on three news stories that jumped out at me. Lete’s jump right in.
Foxconn Hints at Robust iPhone Demand
Here’s Reuters:
“Taiwan's Foxconn, the world's largest contract electronics maker, said on Tuesday it was "cautiously optimistic" about its fourth-quarter revenue outlook after reporting record-breaking September sales.
Like other global manufacturers, the Taiwanese company, a major Apple Inc supplier, could be vulnerable to slowing consumer tech demand as the global economy faces the possibility of recession and inflation soars, especially in Europe and the United States.
But the company said in a statement it was ‘cautiously optimistic’ about the outlook for the final three months of 2022, and maintained its full-year guidance of growth given in August, from previous guidance of flattish revenue.
‘However, the dynamics of inflation, the pandemic, and the supply chain still need to be closely monitored,’ it said.
Formally known as Hon Hai Precision Industry Co Ltd, the company said revenue for September and the third quarter grew 40.39% and 24.4% on the year, respectively, both hitting record highs and beating its own expectations.”
Caution is always needed when reading too much into what any one company from Apple’s supply chain and assembly apparatus has to say. With that said,
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