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

Discussion in ' News Discussion' started by MacRumors, Aug 13, 2013.

  1. MacRumors macrumors bot


    Apr 12, 2001

    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'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.
    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
  2. subsonix macrumors 68040

    Feb 2, 2008
    This is fantastic. Apparently Apple does very well. :)
  3. basesloaded190 macrumors 68030


    Oct 16, 2007
    But I thought Larry Ellison said Apple was going under?
  4. Squilly macrumors 68020


    Nov 17, 2012
    Surprised. Didn't think Apple was doing this well. Maybe Foxconn had mistaken Apple for Samsung ;)
  5. Ventilatedbrain macrumors regular

    Nov 22, 2012
    I know I'm not the only one who thinks the 5c is apple's new iPad mini AKA kick ass :))))
  6. Konrad9 macrumors 6502a

    Feb 23, 2012
    They're not, their supplier is.
  7. Ventilatedbrain, Aug 13, 2013
    Last edited: Aug 13, 2013

    Ventilatedbrain macrumors regular

    Nov 22, 2012
    Correct me if I'm wrong ... Wasn't Samsung kicked out of foxconn because they stole a lot of ideas from other companies ??
  8. FrizzleFryBen macrumors 6502

    Dec 14, 2009
    Charlotte, NC
    Can we have a new Foxconn stock photo? Seems like the same three over and over.
  9. vpro macrumors 65816


    Jun 8, 2012
  10. ekdor, Aug 13, 2013
    Last edited by a moderator: Aug 15, 2013

    ekdor Guest

    Oct 24, 2007
    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...
  11. taxiapple macrumors regular

    Jun 9, 2009
    You need to read the article again.....he never has said Apple was "going under"or even implied that "Apple was going under".
  12. Macist macrumors 6502a

    Mar 13, 2009
    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!
  13. lotzosushi macrumors 6502


    Jan 10, 2007
    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.
  14. Ryth macrumors 65816

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

  15. WiiDSmoker macrumors 65816


    Sep 15, 2009
    Hermitage, TN
    All this profit and companies can't seem to pay their employees more :confused:
  16. Benjamins macrumors 6502a

    Jul 15, 2010
    Apple is so doomed that it's not even funny anymore.
  17. basesloaded190 macrumors 68030


    Oct 16, 2007
    I guess I mistook the downward direction of his finger as a bad sign :rolleyes:
  18. iLilana macrumors 6502a


    May 5, 2003
    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.
  19. Glideslope macrumors 601


    Dec 7, 2007
    Correct, and they continue to steal. Daily. ;)
  20. TWSS37 macrumors 65816

    Feb 4, 2011
    Surely this increase in profit will trickle down to the employee level in the forms of monetary raises, bonuses, better living environments... Right?
  21. Oletros macrumors 603


    Jul 27, 2009
    Premià de Mar
    Mmm, no, you're wrong?
  22. Ryth macrumors 65816

    Apr 21, 2011
    Nothing is stopping you from making your own company and paying employees what you want.
  23. iStig macrumors member

    May 20, 2010

    Could someone with photoshop skills and a little free time create a mashup image of Pegasus and Megatron? Pretty please!?
  24. OLDCODGER macrumors 6502a

    Jul 27, 2011
    Lucky Country
  25. absurdamerica macrumors regular

    Nov 14, 2011
    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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