Although Apple didn’t really wow investors with its overall Q3 numbers, 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 Apple post a $6.9 billion profit for the quarter, but it also gave Foxconn a 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 Apple…
The Journal’s Lorraine Luk reports:
“TAIPEI—Hon Hai Precision Industry Co., 2317.TW +2.06% assembler of Apple Inc.’s AAPL +4.75% iPhones 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 earns more than 40% of its revenue from Apple, faces challenging times ahead as Apple’s growth momentum slows. Hon Hai’s shares, traded in Taiwan, have fallen about 12% since the beginning of 2013, mirroring Apple’s losses earlier this year on concerns over customer fatigue with iPhones 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 year. This was good enough to beat out analysts’ estimates of NT$16.32 billion.
This is good news for the manufacturer, who back in June said that it was looking to diversify its business due to a lack of Apple product launches. The company earns 40% of its revenue from Apple, and its profits looked bleak 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 release a slew of new products this quarter. In fact, Foxconn has been on a hiring spree in recent months, picking up 90,000 workers to help it build the new iPhone.