Foxconn posts record quarterly profit on Apple boost

Foxconn factory in Foshan City, in southern China's Guangdong province. Hon Hai also known as Foxconn is the world's largest contract manufacturer

Related Stories

Hon Hai Precision Industry, a major assembler of Apple products, has posted record quarterly profits helped by growing demand for iPhones and iPads.

The Taiwanese firm, also known as Foxconn Technology, posted a net profit of NT$37bn ($1.2bn; £814m) in the October to December quarter.

It also reported a 16% jump in full year profit for 2012 to NT$94.8bn.

Foxconn is the world's biggest contract electronics maker and Apple is one of its biggest clients.

According to some estimates, orders from Apple account for almost half of Foxconn's total revenue.

In the October to December quarter, Apple had sold 47.8 million iPhones, up from 37 million a year earlier.

Meanwhile, the launch of iPad mini, also boosted sales of its tablet PCs - it sold 22.9 million iPads, compared with 15.4 million in the same period in 2011.

Slowdown concerns

However, the heavy reliance on Apple has also raised concerns that Foxconn's growth may slow in the coming months.

Some analysts said the rapid rate of growth that smartphones and tablet PCs had seen in recent years could not be sustained.

"In most of the developed economies, smartphones are at a mature penetration stage and tablets are pretty close to being at that stage," said Andrew Milroy of consultancy firm Frost & Sullivan.

Mr Milroy added that Apple had so far not been able to replicate the success it enjoyed in the developed economies in emerging markets.

He explained that in the emerging economies, Apple products were still very expensive and out of reach for many consumers.

At the same time, Apple is facing increased competition from other smartphone makers in those markets.

"They are being hammered by low-cost smartphones in countries such as China," he said.

The fear is that if Apple's growth rate slows, it will have a knock on effect on suppliers such as Foxconn.

More on This Story

Related Stories

More Business stories

RSS

Features & Analysis

  • An ant and a humanMass of bodies

    Do all the world's ants really weigh as much as all the humans?


  • Taxi in Mexico Freewheeling

    How I got my driving licence without taking a test


  • Tattooed person using tabletRogue ink

    People who lost their jobs because of their tattoos


  • Indian coupleSuspicious spouses

    Is your sweetheart playing away? Call Delhi's wedding detective


Elsewhere on the BBC

  • GeoguessrWhere in the world...?

    Think you are a geography expert? Test your knowledge with BBC Travel’s interactive game

Programmes

  • StudentsClick Watch

    Could a new social network help tailor lessons to students’ needs and spot when they fall behind?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.