Strong sales of Apple's iPhone boost Foxconn profits by 41%
Net profits at Apple manufacturing partner Foxconn were up by 41 percent in the company's second quarter, boosted by stronger than expected sales of the existing iPhone lineup.
Artist's conception of a possible iPhone 5S. Source: AppleInsider
Net profit for the quarter was 16.98 billion New Taiwan dollars, or $566.7 million U.S. That was up from $12.06 billion New Taiwan dollars in the June quarter of 2012.
Apple is responsible for more than 40 percent of revenue at Hon Hai Precision Industry Co., according to The Wall Street Journal. Hon Hai is better known by its trade name, Foxconn.
Foxconn's strong numbers for the June quarter were benefitted greatly by Apple's own quarter, in which the company shipped a quarterly record 31.2 million iPhones. That number was much higher than many analysts expected, given the fact that sales typically slow down as the expected launch of a new iPhone approaches.
Market watchers believe iPhone demand will grow even greater this fall with the launch of new products setting the stage for a blockbuster holiday season.
Foxconn has reportedly been gearing up and hiring additional personnel in anticipation of a number of new Apple products this fall, most significant of which will be the next flagship iPhone, rumored to be named the "iPhone 5S." Apple is also said to be planning to debut a new multi-colored low-cost iPhone, referred to as an "iPhone 5C," though that device is being assembled at Pegatron, a competing supplier.
Both the "iPhone 5S" and "iPhone 5C" are expected to be introduced by Apple at a media event apparently scheduled for Sept. 10. If past product launch schedules hold once again for 2013, that would make the new iPhones available on Friday, Sept. 20.
23 Comments
Now Apples expected to do great. Analysts are lunatics.
[quote name="shigh" url="/t/159023/strong-sales-of-apples-iphone-boost-foxconn-profits-by-41#post_2379544"]Now Apples expected to do great. Analysts are lunatics.[/quote] That pretty much sums it up. I wonder what they will say when Apple blows every other tech company out of the water this fall with the cheap iPhone and new iPads.
Yeah, wasn't it just last month we had news of Foxconn operations slowing down, attributed mostly to a decline for the demand of the iPhone?
Now all of a sudden we have this.
[quote name="TheDBA" url="/t/159023/strong-sales-of-apples-iphone-boost-foxconn-profits-by-41#post_2379552"]Yeah, wasn't it just last month we had news of Foxconn operations slowing down, attributed mostly to a decline for the demand of the iPhone? Now all of a sudden we have this. [/quote] That's the problem with all these reports. No one ever holds these people accountable - and, in fact, it seems as if no one ever remembers the story they were telling just weeks ago.
In the past, we had newspaper print that is archived somewhere. Now, with online articles and a must-have-now mentality, anything written will pretty much be forgotten by most people literally minutes after they read it. Articles that are pure BS - like analyst predictions - can be easily changed or deleted and most will not notice.
So sad. These a$$hats should be held accountable. As far as I'm concerned they are manipulating AAPL.