Strong sales of Apple's iPhone boost Foxconn profits by 41%

Posted:
in iPhone edited January 2014
Net profits at Apple manufacturing partner Foxconn were up by 41 percent in the company's second quarter, boosted by stronger than expected sales of the existing iPhone lineup.

Flash
Artist's conception of a possible iPhone 5S. Source: AppleInsider


Net profit for the quarter was 16.98 billion New Taiwan dollars, or $566.7 million U.S. That was up from $12.06 billion New Taiwan dollars in the June quarter of 2012.

Apple is responsible for more than 40 percent of revenue at Hon Hai Precision Industry Co., according to The Wall Street Journal. Hon Hai is better known by its trade name, Foxconn.

Foxconn's strong numbers for the June quarter were benefitted greatly by Apple's own quarter, in which the company shipped a quarterly record 31.2 million iPhones. That number was much higher than many analysts expected, given the fact that sales typically slow down as the expected launch of a new iPhone approaches.

Market watchers believe iPhone demand will grow even greater this fall with the launch of new products setting the stage for a blockbuster holiday season.

Foxconn has reportedly been gearing up and hiring additional personnel in anticipation of a number of new Apple products this fall, most significant of which will be the next flagship iPhone, rumored to be named the "iPhone 5S." Apple is also said to be planning to debut a new multi-colored low-cost iPhone, referred to as an "iPhone 5C," though that device is being assembled at Pegatron, a competing supplier.

Both the "iPhone 5S" and "iPhone 5C" are expected to be introduced by Apple at a media event apparently scheduled for Sept. 10. If past product launch schedules hold once again for 2013, that would make the new iPhones available on Friday, Sept. 20.
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Comments

  • Reply 1 of 23
    shighshigh Posts: 27member
    Now Apples expected to do great. Analysts are lunatics.
  • Reply 2 of 23
    blackbookblackbook Posts: 1,361member
    shigh wrote: »
    Now Apples expected to do great. Analysts are lunatics.

    That pretty much sums it up. I wonder what they will say when Apple blows every other tech company out of the water this fall with the cheap iPhone and new iPads.
  • Reply 3 of 23
    thedbathedba Posts: 475member


    Yeah, wasn't it just last month we had news of Foxconn operations slowing down, attributed mostly to a decline for the demand of the iPhone?


    Now all of a sudden we have this.

  • Reply 4 of 23
    jragostajragosta Posts: 10,473member
    thedba wrote: »
    Yeah, wasn't it just last month we had news of Foxconn operations slowing down, attributed mostly to a decline for the demand of the iPhone?
    Now all of a sudden we have this.

    That's the problem with all these reports. No one ever holds these people accountable - and, in fact, it seems as if no one ever remembers the story they were telling just weeks ago.
  • Reply 5 of 23
    sflocalsflocal Posts: 4,624member

    Quote:

    Originally Posted by jragosta View Post





    That's the problem with all these reports. No one ever holds these people accountable - and, in fact, it seems as if no one ever remembers the story they were telling just weeks ago.




    In the past, we had newspaper print that is archived somewhere.  Now, with online articles and a must-have-now mentality, anything written will pretty much be forgotten by most people literally minutes after they read it.  Articles that are pure BS - like analyst predictions - can be easily changed or deleted and most will not notice.



    So sad.  These a$$hats should be held accountable.  As far as I'm concerned they are manipulating AAPL.

  • Reply 6 of 23
    adonissmuadonissmu Posts: 1,772member


    People should know better. These analyst say things so they can manipulate the markets for their own good. 

  • Reply 7 of 23
    SpamSandwichSpamSandwich Posts: 31,131member


    Today's action comes from several Carl Icahn tweets (here's the latest):  "Had a nice conversation with Tim Cook today. Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly."

  • Reply 8 of 23
    slurpyslurpy Posts: 5,151member
    Does this mean Apple's doomed?
  • Reply 9 of 23
    thedbathedba Posts: 475member
    OK! What the hell just happened here? Did anyone else notice? Since morning, AAPL stock has been up by $6-7 from the previous day. Then this story gets announced and suddenly, Boom! AAPL Stock is up by $20. Is it this story or something else?
  • Reply 10 of 23


    How can this be? Wasn't Foxconn running away from Apple at full gallop because of depressed Apple demand?

  • Reply 11 of 23
    pazuzupazuzu Posts: 1,728member

    Quote:

    Originally Posted by Slurpy View Post



    Does this mean Apple's doomed?


    What would Mike Daisey say?

  • Reply 12 of 23

    Quote:

    Originally Posted by TheDBA View Post



    OK! What the hell just happened here? Did anyone else notice? Since morning, AAPL stock has been up by $6-7 from the previous day. Then this story gets announced and suddenly, Boom! AAPL Stock is up by $20. Is it this story or something else?




    Carl Ichan buys huge stake in AAPL. He talked to Tim Cook today and more news to come today.


     


    https://twitter.com/Carl_C_Icahn

  • Reply 13 of 23
    SpamSandwichSpamSandwich Posts: 31,131member

    Quote:

    Originally Posted by helicopterben View Post




    Carl Ichan buys huge stake in AAPL. He talked to Tim Cook today and more news to come today.


     


    https://twitter.com/Carl_C_Icahn



     


    A nice counterpunch to the recent pile-on attacks of Apple from Wall Street and analysts.

  • Reply 14 of 23
    ochymingochyming Posts: 474member

    What is weird, Apple is the embodiment of what should be free/fair trade.

    How?

    Apple has an infinite number of competitors ( i have been writing about this here, for years ), unlike Microsoft and Google.
    Microsoft and Google are in bed with those infinitre Apple`s competitors.

    Even so, Apple`s biz strategy is look at as doomed to fail, an aberation of sort.
    It should be look at as something to be prized. Because it empowers creativity.

    Microsoft and Google strategy is a corfort corner compared to Apple`s.
  • Reply 15 of 23
    jfc1138jfc1138 Posts: 3,090member

    Quote:

    Originally Posted by TheDBA View Post



    OK! What the hell just happened here? Did anyone else notice? Since morning, AAPL stock has been up by $6-7 from the previous day. Then this story gets announced and suddenly, Boom! AAPL Stock is up by $20. Is it this story or something else?


    Probably more Icahn as he's forward looking while FoxCon's numbers are the past. Granted the numbers are real and Icahn simply has an (albeit informed) opinion.

  • Reply 16 of 23
    jragostajragosta Posts: 10,473member
    jfc1138 wrote: »
    Probably more Icahn as he's forward looking while FoxCon's numbers are the past. Granted the numbers are real and Icahn simply has an (albeit informed) opinion.

    I agree that it's mostly iCahn, but Foxconn's 'past' numbers are relevant, too, for at least 2 reasons:

    1. They're talking about the 2nd quarter. 2nd quarter production at Foxconn translates to 3rd quarter sales for Apple (at least there's a lot of overlap).

    2. There was a lot of press about how poorly Apple's suppliers were doing earlier this year. This report indicates that those reports were in error - which may make people less willing to believe bad news in the future.
  • Reply 17 of 23
    jungmarkjungmark Posts: 6,694member
    Wait I thought Foxconn laid off 1MM workers and that Apple was to blame?
  • Reply 18 of 23
    I will espouse my own theory re Apple/China Mobile and that is they have already struck a deal with China Mobile to carry the iPhone. They are just waiting a the network to start building out (on whatever version of 4G China Mobile is going to roll out) and an iPhone to pair it up with. Otherwise I believe they already have a deal in place. My sources? None, pretty much like every other analyst out there.
  • Reply 19 of 23
    SpamSandwichSpamSandwich Posts: 31,131member

    Quote:

    Originally Posted by deanthology View Post



    I will espouse my own theory re Apple/China Mobile and that is they have already struck a deal with China Mobile to carry the iPhone. They are just waiting a the network to start building out (on whatever version of 4G China Mobile is going to roll out) and an iPhone to pair it up with. Otherwise I believe they already have a deal in place. My sources? None, pretty much like every other analyst out there.


     


    Carl Icahn's loose lips did it.

  • Reply 20 of 23
    jfc1138jfc1138 Posts: 3,090member

    Quote:

    Originally Posted by deanthology View Post



    I will espouse my own theory re Apple/China Mobile and that is they have already struck a deal with China Mobile to carry the iPhone. They are just waiting a the network to start building out (on whatever version of 4G China Mobile is going to roll out) and an iPhone to pair it up with. Otherwise I believe they already have a deal in place. My sources? None, pretty much like every other analyst out there.


    Yes, the new system compatible Qualcom chip was the final piece of the puzzle (IMHO).

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