After Foxconn, TSMC revenues, which produce chips for Apple, also fell

As Apple reports its own earnings quarterly instead of monthly, analysts look to monthly reports from major Apple suppliers like Foxconn and TSMC to see how the firm is performing. In this context, the decrease in the revenues of TSMC, which produces chips for Apple after Foxconn, is remarkable.

The direct context of the revenue declines in Foxconn and TSMC to Apple is not very accurate, but considering that the biggest customer of both companies is Apple, we can say that at least some of their falling sales may be related to the decrease in demand for Apple products from year to year.

First drop in 4 years

In this context, iPhone assembler Foxconn reported last week that it experienced a 21 percent year-on-year revenue drop in March. And now today Apple chip maker TSMC announced that its revenue has dropped 15 percent over the same period. TSMC stated that while its March revenues were 4.78 billion dollars, its first quarter revenues increased by 3.6 percent to 16.73 billion dollars. The 15 percent decrease in March means the first drop in four years for the company.

Like Foxconn, TSMC expects things to get worse before they get better. The company says revenue decline is expected to continue into the current quarter before picking up in the second half of the year. However, it is underlined that the negative growth in this quarter will be smaller. Interest rate hikes, high inflation and banking crisis are blamed for the decrease in demand in TSMC. All of this contributes to consumers feeling anxious about their future financial stability and less willing to spend money on on-demand products like new iPhones.