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.