Apple Shares Rise After iPhone Supplier Reveals Strong Revenues

Here is another sign that the iPhone 7 may be a bit more successful than its predecessor: An Apple chip supplier has posted a stronger than expected quarter, reports Reuters. Apple shares rose 1% following the preliminary quarterly earnings report.

Iphone 7

German supplier Dialog Semiconductor Plc has reported higher than expected revenue, which, combined with previous reports from T-Mobile and Sprint revealing strong pre-orders for the iPhone 7, could suggest that the demand for the newest iPhone is higher compared to last year.

The preliminary third-quarter revenue Dialog reported was up 5% year-over-year and 13% over the midpoint of Credit Suisse analyst Kulbinder Garcha, as cited by Reuters.

Apple accounted for about 80 percent of Dialog’s revenue last year, making the chipmaker’s results a potential indicator of iPhone sales.

“We believe this is another confirming data point of stronger than expected iPhone demand, corroborating the U.S. carriers’ reports a few weeks ago,” Garcha wrote in a note to clients on Thursday.

In the light of falling iPhone sales, this info is quite important, since Apple has stopped sharing first-weekend sales of new iPhones, as it considers this is no longer a relevant metric. First-weekend sales were previously considered an important metric in measuring the success of the Apple handset.

Gartner says the smartphone segment will continue to grow, although there has been a noticeable slowdown compared to previous years. The market research company puts the total number of smartphone units shipped at 1.5 billion, which is not a surprise, as the market is maturing.

Gartner expects a weaker year-over-year volume performance from Apple in 2016, despite the launch of the iPhone 7.

Technology enthusiast, rocker, biker and writer of iPhoneinCanada.ca. Follow me on Twitter or contact me via email: istvan@iphoneincanada.ca