Foxconn Profit Rises 41% on Strong iPhone Sales, Low-Cost iPhone to Drive Similar Gains at Pegatron
Hon Hai Precision Industry Co., Apple's primary iPhone and iPad assembler, has experienced a 41% jump in second quarter net profit thanks to strong iPhone sales, reports The Wall Street Journal.
The company, better known as Foxconn, saw a net profit of NT$16.98 billion, which is approximately US$566.7 million. During the second quarter of 2012, Foxconn's net profit was just NT$12.06 billion. Foxconn reportedly earns more than 40% of its revenue from Apple.
Foxconn's high profit numbers mirror Apple's own record breaking Q2 iPhone sales of 31.2 million units, first announced during the company's third quarter earnings call. Foxconn could see even greater profits in the coming quarters as Apple gears up to release its next generation iPhone, along with additional products like the fifth generation iPad and the Retina iPad mini in the fall months.
Apple is also expected to unveil a new iPhone this fall, which would help pad Hon Hai's earnings in the second half of the year, typically a strong selling season for technology companies due to the back-to-school and holiday shopping seasons.
The products Apple has in the works will also have a huge impact on Pegatron, the company assembling Apple's low-cost "iPhone 5C". According to analyst estimates, the new phone could contribute as much as 40% to Pegatron's third quarter revenue. At a recent investor conference, Pegatron estimated that its sales would grow 40%–50% in Q3 2013.
Both Pegatron and Foxconn have been reported to be hiring a number of new employees as production ramps up on the upcoming devices.
Apple's next generation iPhone 5S is expected to be released during a September 10 event, but it remains unclear if the event will also include the iPhone 5C. Apple is also expected to hold a second event in the last three months of the year to debut new iPads.
Related Stories
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99.
The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
Google has rolled out picture-in-picture support as an "experimental" feature for YouTube premium subscribers, allowing them to watch video in a small window when the app is closed.
If you're a premium YouTube subscriber looking to try out picture-in-picture, follow these steps: Launch a web browser and sign into your YouTube account at YouTube.com.
Navigate to www.youtube.com/new.
Scroll...
The upcoming 14-inch MacBook Pro is set to be more expensive than the current 13-inch MacBook Pro and both the 14 and 16-inch models will offer the same performance, according to the leaker known as "Dylandkt."
The leaker shared the information on Twitter, explaining that both of the upcoming MacBook Pro models, expected to come in 14 and 16-inch sizes, will feature the same performance due...
YouTube is planning to stop supporting its YouTube app on the third-generation Apple TV models, where YouTube has long been available as a channel option.
A 9to5Mac reader received a message about the upcoming app discontinuation, which is set to take place in March.Starting early March, the YouTube app will no longer be available on Apple TV (3rd generation). You can still watch YouTube on...
Apple today released iOS 13.1.3 and iPadOS 13.1.3, minor updates to the iOS 13.1.2 software that was released two weeks ago. This is the fourth update to the iOS 13 operating system that came out in September.
The iOS and iPadOS 13.1.3 updates are available on all eligible devices over-the-air in the Settings app. To access the updates, go to Settings > General > Software Update....
The finish line is in sight! Apple's annual iPhone event is likely just a week or so away and all eyes will be on the company as it unveils the next version of its most popular product line. With any luck, we'll also see the next-generation Apple Watch and perhaps even some new AirPods.
Other news this week saw Apple making some more changes to its App Store policies in response to a...
Serif today announced across-the-board updates for its popular suite of Affinity creative apps, including Affinity Photo, Affinity Designer, and the Apple award-winning Affinity Publisher for Mac, all of which were among the first professional creative suites to be optimized for Apple's new M1 chip.
"After another year which saw record numbers of people switching to Affinity, it's exciting to...
The iPhone 13 will feature low earth orbit (LEO) satellite communication connectivity to allow users to make calls and send messages in areas without 4G or 5G coverage, according to the reliable analyst Ming-Chi Kuo.
In a note to investors, seen by MacRumors, Kuo explained that the iPhone 13 lineup will feature hardware that is able to connect to LEO satellites. If enabled with the relevant...
As is tradition, Apple executives Craig Federighi and Greg Joswiak joined Daring Fireball's John Gruber in an episode of The Talk Show to discuss several announcements that Apple made over this weeks WWDC, including iPadOS 15, macOS Monterey, and a large focus around privacy.
Federighi kicks off the conversation discussing the common architecture, now thanks to Apple silicon, across all of...
Apple today seeded the third betas of new iOS and iPadOS 14.6 updates to developers for testing purposes, one week after seeding the second iOS and iPadOS 14.6 updates.
iOS and iPadOS 14.6 can be downloaded through the Apple Developer Center or over the air after the proper profile has been installed on an iPhone or iPad.
iOS and iPadOS 14.6 appear to be more minor changes focusing on...
Top Rated Comments
Nothing is stopping you from making your own company and paying employees what you want.
I'm going to try to explain this to you in hopes that you actually come away with some idea of what's going on because you don't have a clue what you're talking about.
No analysts are saying Apple is likely to "fail" or go out of business. They are suggesting that Apple's growth is slowing (which it is) and that going forward it will make much smaller gains than it had been previously. This is somewhat expected to happen as any market matures and solidifies. All the market really gets excited about is future growth and investors are who the analysts are writing for, not Apple or Samsung fanboys on the Internet.
Remember how IBM used to be the name in computing? You probably don't because it was in the 1960's. Did IBM go away? No. Are they the name in computing anymore? No. Apple risks going in a similar direction.
Please show me where manufacturers are "giving away stock". Sure, Android manufacturers are making smaller margins, but the idea that some manufacturers are giving away or even eating a loss just to make Google look better to fanboys on the Internet is absurd.
Correct me if I'm wrong ... Wasn't Samsung kicked out of foxconn because they stole a lot of ideas from other companies ??
Correct, and they continue to steal. Daily. ;)