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> Gross margin for the quarter was 60.4%, operating margin was 50.6%, and net profit margin was 45.8%. Still surprised how profitable TSMC is. Especially as this seems to be below the market expectations (their stock is still falling).
> Gross margin for the quarter was 60.4%, operating margin was 50.6%, and net profit margin was 45.8%. Still surprised how profitable TSMC is. Especially as this seems to be below the market expectations (their stock is still falling).
I hate economics and know nothing really, but those numbers are the highest margins I have ever seen ? Aren't they profitable because they are in a unique position? I would hope they keep being profitable. What happens if they would fail?
Meaning what? The factory gets destroyed? A competitor appears? Labor costs rise? Demand falls?
So long as the world economy is dependent on the TSMC, a CCP invasion seems unlikely if that's what you mean. The profitability isn't the clearest way to measure that. It could fall for a number of reasons without the geopolitical context changing.
Earlier quoted context omitted.
I hate economics and know nothing really, but those numbers are the highest margins I have ever seen ? Aren't they profitable because they are in a unique position? I would hope they keep being profitable. What happens if they would fail?
> those numbers are the highest margins I have ever seen ? It’s not unusual to see 70%+ margins in software products.
Earlier quoted context omitted.
FWIW that statement isn't very meaningful without more context. 20% performance boost could easily be worth many multiples of 2.4x the cost. They only directly compare (240% vs. 20%) if their initial values are the same.
> 20% performance boost could easily be worth many multiples of 2.4x the cost. clearly not the case for iphone 14. people are not buying new iphone just because it is 20% faster than iphone 13.
> Gross margin for the quarter was 60.4% this is what happens when you can convince your top customer to pay you 2.4x to gain that https://forums.appleinsider.com/discussion/229139/a16-bionic...
The customer can sustainably afford to pay in proportion to the value it delivers to them, not TSMC.
Apple has a finely tuned machine for turning performance into profits, and so can afford to pay more than others... and still have it make sense for Apple.
If TSMC instead had a collection of automotive OEMs as their top-tier customers, this math wouldn't work.
The point being... be in a business where your profit margins are a rounding error in comparison to your customers' bill of materials, and you won't ever go hungry.
> Gross margin for the quarter was 60.4%, operating margin was 50.6%, and net profit margin was 45.8%. Still surprised how profitable TSMC is. Especially as this seems to be below the market expectations (their stock is still falling).
What's the US Dollar used in that type of document ? Nominal US Dollar or some inflation-adjusted value like 1990 US Dollar ?
> Gross margin for the quarter was 60.4% this is what happens when you can convince your top customer to pay you 2.4x to gain that https://forums.appleinsider.com/discussion/229139/a16-bionic...
That's a partial accounting. The customer can sustainably afford to pay in proportion to the value it delivers to them , not TSMC. Apple has a finely tuned machine for turning performance into profits, and so can afford to pay more than others... and still have it make sense for Apple. If TSMC instead had a collection of automotive OEMs as their top-tier customers, this math wouldn't work. The point being... be in a…
Earlier quoted context omitted.
FWIW that statement isn't very meaningful without more context. 20% performance boost could easily be worth many multiples of 2.4x the cost. They only directly compare (240% vs. 20%) if their initial values are the same.
> 20% performance boost could easily be worth many multiples of 2.4x the cost. clearly not the case for iphone 14. people are not buying new iphone just because it is 20% faster than iphone 13.
The iphone 14 does not cost 2.4x more because one component is 2.4x more expensive. What is it now? Idk.
A lot has changed since the iphone 13 besides the chip, but it looks like the launch price is $200 more for the 128GB model for the 14 vs. the 13 (~25%). What's the total sales look like? What would the estimated total sales be without it?
Not really interested in going further into this.