Apple assembler Foxconn sees quarterly revenues surge on high iPhone sales

Posted:
in iPhone
Apple's main assembly partner, Foxconn, reportedly saw its net income jump 30 percent to $2.3 billion in the December quarter, fueled heavily by the first full quarter of iPhone 7 sales.




The amount is well in excess of the $1.6 billion consensus estimate among analysts, according to Bloomberg calculations. Foxconn is believed to derive about half its sales from Apple, which sold approximately 78.3 million iPhones during the quarter, setting a new record.

Foxconn was also boosted by a recovery at Sharp, which it bought in August and in February turned its first quarterly net profits in two years. Foxconn cut expenses at the firm by consolidating production lines, improving distribution, and taking advantage of new parts procurement abilities. Though it makes other products, Sharp is likewise an Apple supplier, churning out displays.

Foxconn is further said to be doing well in sales of robots and robotic arms. Some of the machines it produces are used at its own factories, replacing human workers.

Citigroup analyst William Yang has suggested that Foxconn revenues could rise as much as 43 percent in the second half of 2017 versus the first as Apple prepares to ship the "iPhone 8." That device should feature a 5.8-inch Samsung OLED screen, with a portion dedicated to a "function area" replacing a physical home button. It may also use wireless charging, 3D facial recognition, and/or iris scanning.
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Comments

  • Reply 1 of 25
    lkrupplkrupp Posts: 10,557member
    Not bad for a failed product launch and disappointing phone. Pundits are such asshats.
    caliwatto_cobra
  • Reply 2 of 25
    coolfactorcoolfactor Posts: 2,322member
    What to believe? One article says iPhone sales are weak and another says they are strong? This the internet, and what I read is supposed to be true. Ahhhhh ..... *head explodes*
    Fatmanwatto_cobra
  • Reply 3 of 25
    coolfactorcoolfactor Posts: 2,322member
    lkrupp said:
    Not bad for a failed product launch and disappointing phone. Pundits are such asshats.
    What's disappointing is that you consider the phone disappointing.
    brucemc
  • Reply 4 of 25
    Who manufacturers and assembles Airpods?

    Given their multi-month backlog, I imagine those Apple partners are doing well too.

    caliwatto_cobra
  • Reply 5 of 25
    FatmanFatman Posts: 513member
    It's called 'market manipulation'. Publish dozens of articles about a company's mismanagement, failed attempts at innovation, fierce competition, etc. Combine with any negative trends /data points available that can be magnified to infer decline in revenue and profits ... spook investors and the stock price goes down. Why? To scoop up shares at a discount, then when reality hits (usually a quarter later) of record breaking sales, profits, etc. unload the shares for a profit. Wash and Repeat. Wall Street/hedge fund/investment banks at their finest! 
    caliwatto_cobra
  • Reply 6 of 25
    FatmanFatman Posts: 513member
    This is how the Greenwich CT hedge fund managers and investment bankers are able to give junior the Lamborgini he needs to drive to high school. They stay out of prison because the SEC and politicians are on the payroll.
    caliwatto_cobra
  • Reply 7 of 25
    "Foxconn is further said to be doing well in sales of robots and robotic arms." Man, I'm gonna procure the heck out of a couple of those! Improve your golf game with this simple trick: robotic arms!
    jdgazcaliwatto_cobra
  • Reply 8 of 25
    SoliSoli Posts: 10,038member
    lkrupp said:
    Not bad for a failed product launch and disappointing phone. Pundits are such asshats.
    What's disappointing is that you consider the phone disappointing.
    Even if you didn't pick up his sarcasm in the first sentence, his second sentence makes it clear by calling pundits asshats, the people that make these claims.
    edited March 2017 fotoformatcaliwatto_cobra
  • Reply 9 of 25
    calicali Posts: 3,494member
    Thankfully, Foxconn hasn't bit the hand that feeds them and didn't become a Google/Samsung. Smart. 
    watto_cobra
  • Reply 10 of 25
    brucemcbrucemc Posts: 1,541member
    lkrupp said:
    Not bad for a failed product launch and disappointing phone. Pundits are such asshats.
    What's disappointing is that you consider the phone disappointing.
    Sarcasm detector sorely needed...
    watto_cobra
  • Reply 11 of 25
    tzeshantzeshan Posts: 2,351member
    And WSJ disagrees with this article. 

    [$$] Foxconn Posts First-Ever Annual Sales Decline as iPhone Sales Lag

  • Reply 12 of 25
    kevin keekevin kee Posts: 1,289member
    tzeshan said:
    And WSJ disagrees with this article. 

    [$$] Foxconn Posts First-Ever Annual Sales Decline as iPhone Sales Lag

    No surprise as WSJ is one of the asshats.
    watto_cobra
  • Reply 14 of 25
    Not that Apple Insider was ever journalism, but this obsequious adherence to promoting Apple's image is insidious.  This site has gone from an interesting and sometimes intelligent forum for a group with common tech interests, to a place pervaded by its dogmatic fixation with depicting Apple as god-like perfection.  It's a sad little bubble of militant fanbois for whom even the most oblique criticism of Apple is denounced as trolling, or dismissed as (at best) irrelevant and (at worst) conspiratorial.  The Apple users I grew up with shudder at the Orwellian purification of thought demanded by present-day Apple users.  You've taken "think different" and made it "think nice about Apple."  Fake news items like this are an embarrassment, and a symptom of groupthink and intellectual bankruptcy.
    king editor the grate
  • Reply 15 of 25
    http://www.cnbc.com/2017/03/31/apple-iphone-supplier-foxconn-posts-its-first-ever-annual-revenue-decline.html

    Here's the same info, but from a free to read site.

    Depressing headline is followed by positive article.

    And that WSJ article is bunk because it's behind a paywall & I ain't gonna give a dime to the owner of Fox News.
    watto_cobra
  • Reply 16 of 25
    MikeymikeMikeymike Posts: 102member
    AI, or CNBC. Hmmm... which one to believe?

  • Reply 17 of 25
    carnegiecarnegie Posts: 1,082member
    Mikeymike said:
    AI, or CNBC. Hmmm... which one to believe?

    Foxconn's revenues were down for 2016, but its profits were up. More particularly, its profits for the 4th quarter (which we just got results for) were up significantly YoY and that came as a surprise.

    Also, Foxconn's revenues decline for 2016 came from the first 7 months of the year. Looking at September through this February, when the iPhone 7s would have been the main iPhones being produced, in the aggregate Foxconn's revenues are basically flat YoY.

    The point is, the various reports don't necessarily conflict with each other, they're just looking at (or focusing on) different things.
    edited March 2017 Solislprescott
  • Reply 18 of 25
    SoliSoli Posts: 10,038member
    Not that Apple Insider was ever journalism, but this obsequious adherence to promoting Apple's image is insidious.  This site has gone from an interesting and sometimes intelligent forum for a group with common tech interests, to a place pervaded by its dogmatic fixation with depicting Apple as god-like perfection.  It's a sad little bubble of militant fanbois for whom even the most oblique criticism of Apple is denounced as trolling, or dismissed as (at best) irrelevant and (at worst) conspiratorial.  The Apple users I grew up with shudder at the Orwellian purification of thought demanded by present-day Apple users.  You've taken "think different" and made it "think nice about Apple."  Fake news items like this are an embarrassment, and a symptom of groupthink and intellectual bankruptcy.
    You're really that upset because AI reported on an article from Bloomberg? Have you not noticed that AI will report pros and cons about Apple from an unlimited number of sources, often with articles within the same day that conflict with other sources? If you've ever read the site you'd have noticed this, so it seems clear that you just have a beef with AI or any story that is pro-Apple. So why so much animosity toward Apple? Why not take issue with Foxconn for have higher profits for the 4th quarter or for Bloomberg for writing an article about it?
    watto_cobra
  • Reply 19 of 25
    brucemcbrucemc Posts: 1,541member
    Soli said:
    Not that Apple Insider was ever journalism, but this obsequious adherence to promoting Apple's image is insidious.  This site has gone from an interesting and sometimes intelligent forum for a group with common tech interests, to a place pervaded by its dogmatic fixation with depicting Apple as god-like perfection.  It's a sad little bubble of militant fanbois for whom even the most oblique criticism of Apple is denounced as trolling, or dismissed as (at best) irrelevant and (at worst) conspiratorial.  The Apple users I grew up with shudder at the Orwellian purification of thought demanded by present-day Apple users.  You've taken "think different" and made it "think nice about Apple."  Fake news items like this are an embarrassment, and a symptom of groupthink and intellectual bankruptcy.
    You're really that upset because AI reported on an article from Bloomberg? Have you not noticed that AI will report pros and cons about Apple from an unlimited number of sources, often with articles within the same day that conflict with other sources? If you've ever read the site you'd have noticed this, so it seems clear that you just have a beef with AI or any story that is pro-Apple. So why so much animosity toward Apple? Why not take issue with Foxconn for have higher profits for the 4th quarter or for Bloomberg for writing an article about it?
    For many people, anything which is positive on Apple is "biased and for fanboys".  Anything negative is "valid criticism".  

    Not sure what the beef is about though, as there is no end of negative Apple articles to choose from any given day.  If you were to read 100 stories on Apple from multiple media sources, there might 10 which have a positive theme to them - almost all reference Apple w.r.t. its challenges.  Many AI stories have a "con" take to them as you note.
    SoliMikeymikewatto_cobra
  • Reply 20 of 25
    Soli said:
    You're really that upset because AI reported on an article from Bloomberg? Have you not noticed that AI will report pros and cons about Apple from an unlimited number of sources, often with articles within the same day that conflict with other sources? If you've ever read the site you'd have noticed this, so it seems clear that you just have a beef with AI or any story that is pro-Apple. So why so much animosity toward Apple? Why not take issue with Foxconn for have higher profits for the 4th quarter or for Bloomberg for writing an article about it?
    Firstly, you didn't read the Bloomberg article, which says nothing of the sort:
    https://www.bloomberg.com/gadfly/articles/2017-03-30/foxconn-has-traders-trust

    Secondly, I said nothing about Apple (the company) in my post.  My beef as you put it, was me lamenting the fact that Apple Insider has created an impermeable bubble for Apple acolytes to revel in a grotesquely biased and slavishly devoted view of Apple as flawless and unrivaled.  If Apple didn't build it, it's crap.  If they did, it's perfect.  And the same mentality applies to the would-be journalism on this site as well as the colorful commentary accompanying the articles.  Positive remarks about Apple are viewed as unassailable scripture, while negative remarks are attacked, the sources are dismissed no matter how reputable, and the writers themselves are often scorned an ridiculed.

    Your hyper-sensitivity is manifest in your assumption that I'm attacking Apple, and consequently you adopt a mindlessly defensive position.  But your very response betrays the prevailing attitude of this website and probably of many of the participants in these forums - namely, that if you don't have something nice to say about Apple, then you've got nothing to say at all.  I find that climate oppressive, and contrary to both the interests of Apple customers and to the health of the company.
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