Strong sales of Apple's iPhone boost Foxconn profits by 41%
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.
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.
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.
Comments
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.
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.
Quote:
Originally Posted by jragosta
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.
People should know better. These analyst say things so they can manipulate the markets for their own good.
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."
How can this be? Wasn't Foxconn running away from Apple at full gallop because of depressed Apple demand?
Quote:
Originally Posted by Slurpy
Does this mean Apple's doomed?
What would Mike Daisey say?
Quote:
Originally Posted by TheDBA
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
Quote:
Originally Posted by helicopterben
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.
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.
Quote:
Originally Posted by TheDBA
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.
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.
Quote:
Originally Posted by deanthology
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.
Quote:
Originally Posted by deanthology
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).