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Foxconn Profit Rises 41% on Strong iPhone Sales, Low-Cost iPhone to Drive Similar Gains at Pegatron

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MacRumors

macrumors bot
Original poster
Apr 12, 2001
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Hon Hai Precision Industry Co., Apple's primary iPhone and iPad assembler, has experienced a 41% jump in second quarter net profit thanks to strong iPhone sales, reports The Wall Street Journal.

The company, better known as Foxconn, saw a net profit of NT$16.98 billion, which is approximately US$566.7 million. During the second quarter of 2012, Foxconn's net profit was just NT$12.06 billion. Foxconn reportedly earns more than 40% of its revenue from Apple.

foxconn_workers_2.jpg
Foxconn's high profit numbers mirror Apple's own record breaking Q2 iPhone sales of 31.2 million units, first announced during the company's third quarter earnings call. Foxconn could see even greater profits in the coming quarters as Apple gears up to release its next generation iPhone, along with additional products like the fifth generation iPad and the Retina iPad mini in the fall months.
Apple is also expected to unveil a new iPhone this fall, which would help pad Hon Hai's earnings in the second half of the year, typically a strong selling season for technology companies due to the back-to-school and holiday shopping seasons.
Click to expand...
The products Apple has in the works will also have a huge impact on Pegatron, the company assembling Apple's low-cost "iPhone 5C". According to analyst estimates, the new phone could contribute as much as 40% to Pegatron's third quarter revenue. At a recent investor conference, Pegatron estimated that its sales would grow 40%-50% in Q3 2013.

Both Pegatron and Foxconn have been reported to be hiring a number of new employees as production ramps up on the upcoming devices.

Apple's next generation iPhone 5S is expected to be released during a September 10 event, but it remains unclear if the event will also include the iPhone 5C. Apple is also expected to hold a second event in the last three months of the year to debut new iPads.

Article Link: Foxconn Profit Rises 41% on Strong iPhone Sales, Low-Cost iPhone to Drive Similar Gains at Pegatron
 
Article Link
https://www.macrumors.com/2013/08/13/foxconn-profit-rises-41-on-strong-iphone-sales-low-cost-iphone-to-drive-similar-gains-at-pegatron/
Squilly

Squilly

macrumors 68020
Nov 17, 2012
2,260
4
PA
Surprised. Didn't think Apple was doing this well. Maybe Foxconn had mistaken Apple for Samsung ;)
 
V

Ventilatedbrain

macrumors regular
Nov 22, 2012
201
68
Squilly said:
Surprised. Didn't think Apple was doing this well. Maybe Foxconn had mistaken Apple for Samsung ;)
Click to expand...

Correct me if I'm wrong ... Wasn't Samsung kicked out of foxconn because they stole a lot of ideas from other companies ??
 
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1

1239689

Suspended
Oct 24, 2007
199
0
And yet according to every half whit analyst and for this and that Apple is going fail. Contradictions are driving me nuts.

Fail to see how they will fail any more than any othe big company. Of course they are loosing market share but that's what happens when dozens of cheap competitors join the Frey and some of the practically and literally give away stock and claim it as legitimate sales.

It's easy to undercut a market. Much harder to produce high quality product. My experienced with a couple of the different Android mush mash was appalling. I can't see what anyone sees in them. SERIOUSLY IT'S RUBBISH! Stop buying the sheet, your bringing all humanity down a notch. Bloody moans atolls...
 
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M

Macist

macrumors 6502a
Mar 13, 2009
784
462
Wow! Well done Foxconn! And as it's Communist China you can be sure that the workers will share in all that lovely new wealth!
 
lotzosushi

lotzosushi

macrumors 6502
Jan 10, 2007
432
401
I'm so sick of hearing about this supposed cheap low-cost phone already. I really hope it's not true and is just Apple trolling the world.
 
R

Ryth

macrumors 68000
Apr 21, 2011
1,591
157
But but but...the Analysts said that Foxconn was trying to diversify because Apple wasn't doing that well for them.

Pfft.
 
iLilana

iLilana

macrumors 6502a
May 5, 2003
807
300
Alberta, Canada
I love stories like this

I love when actual number are completely different than competitors' predictions. I have a question though. Does apple go out and say **** about other companies randomly to **** with their stock? If so provide examples. Unproviked. I mean other than Steve and his passive aggressive tactics with microsoft.
 
T

TWSS37

macrumors 65816
Feb 4, 2011
1,107
232
Surely this increase in profit will trickle down to the employee level in the forms of monetary raises, bonuses, better living environments... Right?
 
I

iStig

macrumors member
May 20, 2010
32
35
Pegatron

Could someone with photoshop skills and a little free time create a mashup image of Pegasus and Megatron? Pretty please!?
 
A

absurdamerica

macrumors regular
Nov 14, 2011
158
0
ekdor said:
And yet according to every half whit analyst and for this and that Apple is going fail. Contradictions are driving me nuts.

Fail to see how they will fail any more than any othe big company. Of course they are loosing market share but that's what happens when dozens of cheap competitors join the Frey and some of the practically and literally give away stock and claim it as legitimate sales.

It's easy to undercut a market. Much harder to produce high quality product. My experienced with a couple of the different Android mush mash was appalling. I can't see what anyone sees in them. SERIOUSLY IT'S RUBBISH! Stop buying the sheet, your bringing all humanity down a notch. Bloody moans atolls...
Click to expand...

I'm going to try to explain this to you in hopes that you actually come away with some idea of what's going on because you don't have a clue what you're talking about.

No analysts are saying Apple is likely to "fail" or go out of business. They are suggesting that Apple's growth is slowing (which it is) and that going forward it will make much smaller gains than it had been previously. This is somewhat expected to happen as any market matures and solidifies. All the market really gets excited about is future growth and investors are who the analysts are writing for, not Apple or Samsung fanboys on the Internet.

Remember how IBM used to be the name in computing? You probably don't because it was in the 1960's. Did IBM go away? No. Are they the name in computing anymore? No. Apple risks going in a similar direction.

Please show me where manufacturers are "giving away stock". Sure, Android manufacturers are making smaller margins, but the idea that some manufacturers are giving away or even eating a loss just to make Google look better to fanboys on the Internet is absurd.
 
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