Apple Supplier Foxconn Reports Strong Quarterly Profit Ahead of iPhone 13

Foxconn, one of Apple’s largest suppliers, reported strong quarterly profit ahead of assembling the large majority of the iPhone 13 lineup.

Taiwan’s Foxconn — Apple’s primary iPhone assembler — reported a better-than-expected quarterly profit on Thursday due to strong demand for technology products from clients as people continued to telecommute amid the COVID-19 pandemic, reads a new Reuters report.

The world’s largest contract electronics maker reported April to June net profit of $29.779 billion NTD ($1.34 billion CAD), up 30 percent from a year earlier. Second-quarter revenue increased 20 percent from a year earlier to $1.351 trillion NTD($60.8 billion USD).

The Taiwanese electronics maker, formally known as Hon Hai Precision Industry Co., said its operating profit margin improved to 2.40 percent in the second quarter from 1.99 percent a year earlier.

For April-June, Foxconn’s revenue rose by a fifth to T$1.35 trillion from a year earlier. For the third quarter, it forecast a 3-15% rise in overall revenue and a more than 15% jump in revenue from its consumer electronics business.

Chairman Liu Young-way said the forecasts were based on the pandemic development at the moment.

“The epidemic situation appears to be worsening in Asia. Because Asia is the key global hub for ICT components, it needs to be closely watched whether the epidemic will have an impact to the overall supply chain,” he said, referring to the supply chain for tech products.

Analysts said Apple’s upcoming iPhone 13 models would still boost Foxconn’s business, with Taipei-based Fubon Securities expecting Foxconn to assemble 75 percent of the forecast total of 85 million new iPhones this year.