Apple Inc. (NASDAQ:AAPL) will possibly better third quarter results than analysts’ expectations based on the unprecedented sales of the recently released iPhone and the gross margins on the phones. There are only a few people who know what goes inside Apple Inc. (NASDAQ:AAPL)’s iPhones because Apple Inc. (NASDAQ:AAPL) makes it sure that a user doesn’t tampers with the hardware and there are even fewer who can estimate the gross margins that the company earns. Arik Hesseldahl, Senior editor at Re/code is one among the few people who can answer all those questions. He was recently on CNBC to discuss about the components that make the iPhone.
“The main producer I am thinking about is TSMC, they are the new supplier for the main processor chip inside the iPhone 6 and the iPhone 6 Plus. Used to be a 100% Samsung, but because of the acrimonious patent litigation between them Apple is trying to shift production away. TSMC, Taiwan semiconductor Manufacturing Company,” Hesseldahl said.
Hesseldahl also revealed that Apple Inc. (NASDAQ:AAPL)’s gross margins on the new iPhone 6 are 69-70%, which is significantly higher than the 55% gross margins that the first generation of the iPhone provided. He also revealed that Apple Inc. (NASDAQ:AAPL) has added a second accelerometer chip, which gauges movements, inside the iPhone 6, which according to his reasoning is because the company wanted to improve accuracy.
While most people believe that it’s the A8 chips that will be processing everything in the new iPhone 6, Hesseldahl mentioned that there is another chip side-by-side the A8 chip which collects information and processes it. Hesseldahl also revealed that Samsung is only supplying the storage chips for Apple Inc. (NASDAQ:AAPL)’s new iPhone, unlike earlier when it used to supply a lot of components for the iPhones.