High iPhone 6 Demand Pushes Foxconn Earnings up 56% Year-Over-Year
High iPhone sales mean profit not just for Apple: Its suppliers enjoy their share of the iPhone pie. For example, Apple’s long-time assembly partner, Foxconn, has just reported its first-quarter earnings and the numbers are impressive: The company achieved its highest first-quarter profit growth in a decade (via the Wall Street Journal).
Driven by strong iPhone 6 and iPhone 6 Plus demand, Foxconn reported a 56% increase in earnings, beating the 33% growth reported for the past quarter (which usually is the peak season), and doubled its dividend payout.
Foxconn strongly benefits from high iPhone sales, because half of its revenue comes from Apple. You may recall earlier attempts at reducing its dependence on Apple, but the two companies seem to be bonded together. Analysts seem to corroborate that, as they are skeptical about Foxconn’s diversification efforts, simply because the company doesn’t have experience in the new market it entered recently.
For example, Foxconn is rumoured to have made a huge investment to manufacture displays exclusively for Apple.
As the Wall Street Journal report highlights, the iPhone assembler’s net profit for the first quarter of 2015 is up to 30.39 billion new Taiwanese dollars (roughly $998 million), while revenue rose 15% to NT$1.01 trillion from NT$883.48 billion.