Foxconn profits ride high on iPhone X, dispelling worries about Apple's sales
Apple assembly partner Hon Hai -- better known as Foxconn -- has posted net income of $2.5 billion for the December quarter, reportedly linked to strong orders and consequent sales of the iPhone X.
The figure exceeded the roughly $2 billion anticipated, Bloomberg said. Foxconn is highly dependent on Apple, from which it's thought to generate over half its revenue, much of that from iPhones. The manufacturer didn't break down its latest results by company or product.
Apple CEO Tim Cook has asserted that the iPhone X sold well during the critical holiday season. Both before and after the phone's launch, there have been fears that its high cost -- starting at $999, before any upgrades, warranties, or accessories -- could steer people towards Android or cheaper iPhones.
Specifically, Cook said that the iPhone X was the company's best-selling iPhone since the early November launch, all the way up to the day of the last quarterly earnings report on Feb. 1.
Most recently, Cowen and Company analyst Karl Ackerman suggested that iPhone X production has met expectations, but could drop lower.
RBC Capital Markets' Amit Daryanani recently claimed that Apple has had "limited success" pitching the iPhone X at its current price, and might sell this fall's follow-up for $899 instead. A bigger 6.5-inch OLED iPhone might sell for $999.
it isn't certain where either analyst sourced the data that they used to reach their conclusions. Every first quarter has a reduction in iPhone orders because of seasonality, and that "reduction" may be being misinterpreted by the analysts as an unusual one.
For people unwilling to spend either sum on a smartphone, Apple is expected to ship a 6.1-inch LCD model that may nevertheless have Face ID and an edge-to-edge display, unlike the iPhone 8 and 8 Plus.
The figure exceeded the roughly $2 billion anticipated, Bloomberg said. Foxconn is highly dependent on Apple, from which it's thought to generate over half its revenue, much of that from iPhones. The manufacturer didn't break down its latest results by company or product.
Apple CEO Tim Cook has asserted that the iPhone X sold well during the critical holiday season. Both before and after the phone's launch, there have been fears that its high cost -- starting at $999, before any upgrades, warranties, or accessories -- could steer people towards Android or cheaper iPhones.
Specifically, Cook said that the iPhone X was the company's best-selling iPhone since the early November launch, all the way up to the day of the last quarterly earnings report on Feb. 1.
Most recently, Cowen and Company analyst Karl Ackerman suggested that iPhone X production has met expectations, but could drop lower.
RBC Capital Markets' Amit Daryanani recently claimed that Apple has had "limited success" pitching the iPhone X at its current price, and might sell this fall's follow-up for $899 instead. A bigger 6.5-inch OLED iPhone might sell for $999.
it isn't certain where either analyst sourced the data that they used to reach their conclusions. Every first quarter has a reduction in iPhone orders because of seasonality, and that "reduction" may be being misinterpreted by the analysts as an unusual one.
For people unwilling to spend either sum on a smartphone, Apple is expected to ship a 6.1-inch LCD model that may nevertheless have Face ID and an edge-to-edge display, unlike the iPhone 8 and 8 Plus.
Comments
But don't thank Apple or iPhone. Operating profit sucked.
Instead, Hon Hai juiced the numbers with a spree of highly profitable asset disposals during the quarter.
“Cook said that the iPhone X was the company's best-selling iPhone since the early November launch”
plus a net income that’s $.5 billion more than anticipated.
You can't change the fact that people are irrational, so you might as well be opportunistic. That statement doesn't bring me joy but it can bring you a little additional wealth.
Almost all “analysts” opinions are basically worthless.
This is such FUD! I expected more from AppleInsider writers!
That guy is full of shit, as he doesn’t cite ANY sources for his tweet, just another anal-yst making up anti-Apple BS, and you re-posted that garbage here, which doesn’t shine you in a positive light either.
Indeed, having owned one since launch, and just having updated to iOS 11.3, it’s the ultimate smartphone ever made, hands down! Yes the cost is definitely a deterrent to some in the market for a smartphone, but that’s OK, since there are still other iPhone’s that are priced more competitively, and still offer everything an iPhone stands for.
Have you updated to iOS 11.3 yet? Most of the issues I saw in Messages, and the rest of the OS, have been addressed in this update, with the exception of missing new features like Messages in the Cloud, which I am DYING to get!
It goes back to what I've said before...it seems like the media and just waiting for Apple to fail....because it will give them a high story to write about. If they stop and think, I bet a lot of them write on a Apple device so again, I don't understand why when they use an Apple device all they seem to want to write about is Apple's doom and gloom.
From that article: "Foxconn posted net profit of NT$71.65 billion in the October-December quarter, up 4.2% on the year, but that growth came mainly from an NT$66 billion gain tied to the disposal of Sharp's preferred stock at the end of December rather than iPhone sales."
So you trust the word of one of the most anti-Apple, most-often incorrect news outlet, who doesn’t even cite sources, as backing up the narrative that Hon Hai’s leap in profit is not attributable to Apple sales of iPhone X?
Gotcha, now I know those claims from that guy on Twitter was full of BS!
Oh, speaking of BS:
So once again an “anal-yst” from a securities investments firm, is used in this article to set the tone, coincidence?