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Bryan M. Wolfe
| March 25, 2013
Apple Helps Foxconn Achieve Record Profits In 2012
Being Apple’s main iOS device manufacturer has proven to be quite profitable. Foxconn has announced record profits of NT$3.9 trillion (US$3.2 billion) in 2012. The profit gains are being attributed to Apple’s launch of the iPhone 5, third- and fourth-generation iPads, and the iPad mini, according to Bloomberg. For the entire year, the Hon Hai company saw net income climb 16 percent to NT$94.8 billion from NT$81.6 billion the year before. Revenue was up 13 percent. Says Vincent Chen at Yuanta Financial Holders Co.:
As they scaled up production of the iPhone and solved production bottlenecks, Hon Hai’s profit margins improved and they may have had some room to push Apple for better pricing.Looking ahead, however, Foxconn faces some short-term uncertainty, as iPhone 5 sales are expected to drop off, and Apple has yet to release a new product in 2013. Chen confirms:
Shipments of iPhone started to drop significantly in the first quarter and there may be no new product to boost sales a lot in the second quarter either.One Taiwan dollar trades for approximately US$0.03.