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Foxconn: Profits Jump 41% Thanks To Strong iPhone Sales


Foxconn: Profits Jump 41% Thanks To Strong iPhone Sales

Foxconn aka Hon Hai Precision Industry Company has lately experienced 41% increase in second quarter profits according to WSJ. The primary reason that’s stated for the leap in profits is the strong sales of iPad and iPhones.

The reports states that the company is earning more than 40% of its total revenue directly from Apple. The smartphone assembly giant experienced a net profit of US$566.7 million (NT$16.98 billion) in the second quarter of 2013. This is a significant jump compared to the profit made in the same quarter of 2013, which was US$402 million (NT$12.06 billion).

Hon Hai Precision Industry Co., assembler of Apple Inc.’s iPhones and iPads, posted a 41% rise in second-quarter net profit, helped by strong iPhone sales. But the profit jump is unlikely to soothe concerns that the company, which earns more than 40% of its revenue from Apple, faces challenging times ahead as Apple’s growth momentum slows.

Apple’s growth momentum slows? That isn’t likely to happen anytime soon. A lot of analyst have already made their statement that the upcoming iPhone models – iPhone 5S and iPhone 5C – will mark evolution of the company. The budget iPhone is expected to increase Apple’s market share in countries like India and Thailand, where people have resorted to low cost Android handsets.

Furthermore, iOS 7 is on the verge of being released publicly. The latest iOS version is a complete redesign and is going to arrive with stellar features.
Apple’s momentum is going nowhere anytime soon. The company also has other products in the pipeline such as the next-generation iPad Mini and iPad and iWatch. New iPhone models will be released in September while iPads are going to come out later in the year.

With so much activity going on, it’s likely that Foxconn will report even greater profits next year.
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