Apple Supplier Foxconn Reports Better-Than-Expected Second Quarter Profit
Major Apple supplier Foxconn reported better-than-expected quarterly profit on Wednesday, overcoming slowing smartphone sales thanks to rising telecommuting demand amid the global health crisis (via Reuters).
The iPhone manufacturer posted net profit of $778.54 million for the second quarter ended June, almost $5 billion more than a consensus estimate from analysts, and up around 34 percent from a year earlier.
The results reflect a huge turnaround for the Taiwanese electronics manufacturer, following a near 90 percent drop in first-quarter profit at the beginning of this year.
Foxconn slashed its 2020 revenue outlook in March after strict quarantines were enforced at its China plants for a period in February, at the height of the crisis, which has now largely resolved in the country. Foxconn said at the time it believed the worst was over, and the company would stabilize in the second quarter.
More than 70 percent of the new iPhones could be assembled by Foxconn, according to Taipei-based KGI Securities. Analysts expect the launch to boost Foxconn’s revenue recovery in the months to come.
Apple is widely expected to announce four iPhone 12 models this year, including a 5.4-inch model, two 6.1-inch models, and a 6.7-inch model, all with OLED displays and 5G connectivity.