Ming-Chi Kuo Says iPhone 14 to Cost More at the High End

11 AUGUST 2022 - Despite points pointed by Bloomberg, TF International analyst Ming-Chi Kuo seems to think it’s still iPhone that’s buttering Foxconn’s bread. Hon Hai Precision Industry posted about its earnings on Twitter, and offered a bit of guidance. Quoting the post:

We achieved the highest-ever 2Q revenue and net profit attribute to the parent company. 1H 2022 revenue totaled (~US96.8B). Based on current business outlook, we raise full-year performance to “growing” from “roughly flat”.

That prompted Twitter star and TF International analyst Ming-Chi Kuo to respond in a couple of Twitter posts, wherein he indicated higher prices on the way for iPhone. The first said:

Hon Hai/Foxconn is one of the winners of the increased ASP of iPhone 14 series. I estimated iPhone 14 series ASP would increase by about 15% (vs. iPhone 13 series ASP) to $1,000-1,050 (USD) due to two iPhone 14 Pro's price hikes & higher shipment proportion.

While most expect Apple to deep-six iPhone mini this time around, it doesn’t sound like the analyst is calling for higher prices for the entry level iPhone 14, just the ones at the pro end.

EVs… corporate clients… Ming-Chi Kuo indicates that Foxconn’s good fortune is all about iPhone. Quoting his second Twitter post:

Hon Hai is the major [Electronics Manufacturing Service] for iPhone 14 series (with a 60-70% order proportion), so its revenue will markedly benefit from an increased iPhone 14 series ASP. No wonder Hon Hai raises full-year performance to “growing” from “roughly flat.”