Wednesday, May 18, 2016

Foxconn Profit Rises 41% on Strong iPhone Sales, Low-Cost iPhone to Drive Similar Gains at Pegatron

Although didn’t rlly wow investors with its overallQ3 s, there was one particular metric it blew out of the water: iPhone sales. Wall Street was predicting the company to sell between 25 and 27 million handsets during the period, and it sold 30 million.And the strong iPhone sales not only helped post a $6.9 billion profit for the quarter, but it also gaveFoxconna boost as well. According to a new report from The Wall Street Journal, the manufacturer’s profits surged 41% last during its Q2 thanks to …The Journal’s Lorraine Lukreports:“TAIPEI—Hon Hai Precision IndustryCo.,2317.TW+2.06%assembler ofInc.’s AAPL+4.75%i and iPads, posted a 41% rise in second-quarter net profit, helped by strong iPhone sales.But the profit jump is unlikely to soothe concerns that the company, which rns more than 40% of its revenue from , faces challenging times ahd as ’s growth momentum slows. Hon Hai’s shares, traded in Taiwan, have fallen about 12% since the beginning of 2013, mirroring ’s losses rlier this yr on concerns over customer fatigue with i and iPads. The benchmark Taiex stock-market index gained 3.6% during the same period.”Foxconn said Tuesday that its net profit rose to 16.98 billion New Taiwan dollars (or $566.7 million USD) for the three month period, which ended June 30, from NT$12.06 billion last yr. This was good enough to bt out analysts’ estimates of NT$16.32 billion.This is good news for the manufacturer, whoback in Junesaid that it was looking to diversify its business due to a lack of product launches. The company rns40% of its revenue from , and its profits looked b without a new iPhone or iPad in sight.But the drought is decidedly over. The fall is approaching, and the Cupertino company is expected to relse a slew of new products this quarter. In fact, Foxconn has been on a hiring spree in recent months, picking up90,000 workersto help it buildthe new iPhone.

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