Taiwan’s Foxconn reported a better-than expected quarterly profit on Thursday due to strong demand for technology products from clients, such as Apple Inc, as people continued to telecommute amid the COVID-19 pandemic. <\/p>\n
The world’s largest contract electronics maker reported April-June net profit of T$29.779 billion ($1.07 billion), up 30% from a year earlier. That compared to a Refinitiv consensus estimate of T$25.98 billion drawn from 12 analysts. <\/p>\n
Its revenue rose 20% from a year earlier to T$1.35 trillion, its highest on record for the second quarter and better than a company forecast for a 15% rise. Foxconn also forecast a year-on-year rise in revenues for the current quarter. <\/p>\n
Business was “mainly driven by strong smartphone demand”, CFO David Huang said on a conference call, adding that both net profit and revenue hit record highs in the first half. <\/p>\n
Chairman Liu Young-way, however, cautioned: “The pandemic situation could get worse in Asia … we need to wait and see whether that could affect the supply chain.” <\/p>\n
He reiterated that the global chip shortage could extend into the second quarter of 2022, but that it would have a “very small” impact on Foxconn as many of its clients were “first-tier” companies with more leverage on supplies. <\/p>\n
Apple said in July that the chip shortage that hurt its ability to sell Macs and iPads will start to affect iPhone production and forecast slowing revenue growth. <\/p>\n
Despite the bearish outlook, analysts said Apple’s upcoming iPhone 13 models would still boost Foxconn’s business, with Taipei-based Fubon Securities expecting Foxconn to assemble 75% of the forecast total of 85 million new iPhones this year. <\/p>\n
The Taiwanese company has been seeking to acquire chip plants globally as the shortage rattles producers of goods from cars to electronics. <\/p>\n
Foxconn, formally called Hon Hai Precision Industry Co Ltd, expects overall revenue to rise 3-15% in the third quarter and revenue from the consumer electronics division to rise more than 15% from a year earlier. <\/p>\n
Foxconn’s shares have risen about 16% this year. They ended flat on Thursday, in line with the broader market.<\/p>\n","protected":false},"excerpt":{"rendered":"
Taiwan’s Foxconn reported a better-than expected quarterly profit on Thursday due to strong demand for technology products from clients, such as Apple Inc, as people continued to telecommute amid the COVID-19 pandemic. The world’s largest contract electronics maker reported April-June net profit of T$29.779 billion ($1.07 billion), up 30% from a year earlier. That compared to a Refinitiv consensus estimate of T$25.98 billion drawn from 12 analysts. Its revenue rose 20% from a year earlier to T$1.35 trillion, its highest on record for the second quarter and better than a company forecast for a 15% rise. Foxconn also forecast a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-798864","post","type-post","status-publish","format-standard","hentry","category-telecom"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/798864","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=798864"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/798864\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=798864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=798864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=798864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}