Seeking Alpha

Reports: Foxconn further ramps 5S output, retina Mini production grows

  • The WSJ reports Foxconn "has been running its factories around the clock" to produce the iPhone 5S (AAPL +1.9%), an action that has (as noted by Gene Munster yesterday) lowered 5S order shipping times to 3-5 business days.
  • A Foxconn facility in Zhengzhou, China is said to have ~300K workers dedicated solely to making the 5S and various components for it. A company exec says Foxconn's 5S production is at a record level of 500K units/day (run rate of 45M+ units/quarter).
  • The WSJ, DisplaySearch, and Digitimes have all previously reported of rising 5S and falling 5C production in Q4.
  • Digitimes reports Apple has ramped its November retina iPad Mini production orders to 4M, as component supply constraints that have hampered production thus far get removed.
  • Apple's U.S. online store is currently showing a shipping time of 5-10 business days for all retina Mini models.
  • Meanwhile, hopes continue to grow that China Mobile's (CHL +1.5%) Dec. 18 4G launch event (previous) will feature an iPhone announcement. "Industry insiders" tell state press agency Xinhua an iPhone launch will occur at the event.
Comments (23)
  • Good time to be short Apple lololol
    27 Nov 2013, 10:29 AM Reply Like
  • May the shorts rest in peace.
    27 Nov 2013, 10:34 AM Reply Like
  • Hopefully the current momentum snowballs without some usual bad press to upset the rise........
    27 Nov 2013, 10:44 AM Reply Like
  • Dear Michael Blair,


    Have a nice Thanksgiving,




    27 Nov 2013, 10:45 AM Reply Like
  • LOL
    27 Nov 2013, 11:05 AM Reply Like
  • Watch out. He will threaten to sue you.
    27 Nov 2013, 11:09 AM Reply Like
  • Made my day!
    27 Nov 2013, 10:13 PM Reply Like
  • Apple could do no right, now they can do no wrong. Feel sorry for the people who sold on all those negative analyst reports (not).
    27 Nov 2013, 10:56 AM Reply Like
  • As predicted


    Yet another article to add a few cents to Himax (HIMX), who supply Foxconn


    merry Christmas!
    27 Nov 2013, 11:01 AM Reply Like
  • Given this news, it is all but a fait accompli that Apple will sell over 60 million iPhones in the quarter. If they sell 45 million 5s's -- which based on current daily production they will -- then they only need 15 million more between the 5c's and the 4s's. I think we may see better than a 60 million phone unit quarter.


    I pads will also crush.


    Add China Mobile to that on the 12/18 and this thing goes to the moon. This quarter is going to be a monster. We could be in the mid-600's after earnings in January and all time highs by the end of March.
    27 Nov 2013, 11:16 AM Reply Like
  • Exactly, Jack! 70/30 is 64+ million! Obviously, 16 MM more phones than last year would make a less than 60 Bn Qtr next to impossible. So, not only are we looking at CHL, but a likely guidance increase, too. The extraordinary discount on Apple could cause a 200-400 dollar pop on the stock price if it evaporated! $40 EPS X 21 is $820, and that doesn't count anything for the cash, buyback, or divvy! 21 is the PE of the Nasdaq 100. Incidentally, if they raise and add CHL we are looking closer to 50 EPS with the buyback! If it hits $1000 by New Year's I might retire and become a fan boy!
    27 Nov 2013, 12:20 PM Reply Like
  • Merry Christmas and Happy Holidays to Apple Inc., its outstanding C level, and it fine employees!


    Looking forward to a prosperous 2014!
    27 Nov 2013, 11:37 AM Reply Like
  • I'm on vacation in Malaysia right now & just passed by an iPhone reseller at a large shopping mall. They are selling iPhone 5S 16gig for equivalent of $750USD and SOLD OUT for the last 4 days. The salesman said that there's a long queue each time they do get any. Same story when I passed by Singapore and it also costs more than US.
    27 Nov 2013, 11:38 AM Reply Like
  • Poco,


    Great report! Keep 'em coming from the "real" world.
    27 Nov 2013, 12:21 PM Reply Like
  • Yikes! A typical 70/30 split on newest to two oldest gens gives 64+ million phones this Qtr if the WSJ article is true! The mini R is also being produced at a much higher rate than forecast if the Digitimes article is correct. Apple will have to raise guidance next month if these are even close to correct!
    27 Nov 2013, 12:03 PM Reply Like
  • but the calculation assumes that they've been at 500,000 for the whole quarter. We don't know that. Still very optimistic. Good news
    29 Nov 2013, 04:55 PM Reply Like
  • at what point are they obligated to raise guidance? How does that work?
    29 Nov 2013, 04:57 PM Reply Like
  • not being sarcastic I just don't know the specific parameters of the SEC requirement
    29 Nov 2013, 04:58 PM Reply Like
  • I agree Applo. Obviously, they might have been at a lower rate earlier in the qtr, but they also might have hit the qtr with some inventory. It is hard to make any conclusions on actual numbers, but imho this is very bullish news. The other phrase in the article was that the production rate is at the highest level ever for any phone. The second big unknown variable is the actual mix. The 5 saw a lower mix than the numbers I used, so we could be looking at even more 5C and 4S sales. There is no SEC requirement to up the guidance. I think Apple will, though, because they had so much of a problem with unchecked expectations and the inability to surprise WS. I think they want to guide WS somewhere near the actual range to avoid that problem. They raised last time in the last week of the qtr, so I would be inclined to think it would come around Christmas/NY.
    29 Nov 2013, 05:38 PM Reply Like
  • I can think of about a half a dozen authors on this site that are going to look pretty silly in a couple of months. Apple will have a MASSIVE quarter and all market share data will swing decisively back in Apples direction; all the while while margins expanded, not contracted.
    27 Nov 2013, 12:20 PM Reply Like
  • Then, when Apple can never decline again, the market will ignore the fact that this is the two year anniversary of the quarter that cast Apple into the stock headlines, and blow upward past the trend line again.


    Keep your stops tight about next February.
    27 Nov 2013, 12:58 PM Reply Like
  • Good luck all apple longs ... looks like 2014 is going so big !!!
    27 Nov 2013, 12:25 PM Reply Like
  • Happy holidays for us longs.
    27 Nov 2013, 04:35 PM Reply Like
DJIA (DIA) S&P 500 (SPY)