STMicroelectronics ups 4Q guidance after boost from Apple’s new products

Apple’s new iPhones are helping STMicroelectronics to raise 4Q revenue above estimates at $2.99 billion, as demand for new Apple products is helping semiconductors to resume growth.

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Helene Fouquet for Bloomberg:

“It is clear that Apple is playing an important role in our capability to grow 4Q versus 3Q. STMicro has a nice content in the new platforms that’s the reason why it contributes to our new guidance in 4Q,” President & CEO Jean-Marc Chery told Bloomberg Television.

Bloomberg consensus for the fourth quarter was $2.75 billion, in a range of $2.67 billion to $2.87 billion. Fourth quarter gross margin stood at 38.5%, estimate 37.4%.

STMicroelectronics, along with Qualcomm, Broadcom, are likely principal beneficiaries from the new iPhone 12. LIDAR and Time-of-Flight camera technology in Apple’s iPhone 12 drives sales in STMicro’s AMS unit, according to Bloomberg Intelligence.

Chery says “better than expected market conditions throughout the quarter” boosted results, a trend that will continue in the final quarter. He tells analysts that the market will be growing again in 2021.

MacDailyNews Take: Along with good financial news from LG Display today, it’s clear once again that iPhone is an engine of growth for not only Apple, but suppliers, too.

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