3/17/2021 0 Comments Foxconn Support
The Taipei-based company, however, is expected by analysts to boost its revenue recovery in the months ahead, underpinned by the expected launch in autumn of a new lineup of iPhones by Apple Inc AAPL.O, a major client of Foxconns.Foxconn reported a net profit of T22.9 billion (778.54 million) for the second quarter ended June.That was up 34 from a year earlier and better than a consensus estimate of T17.95 billion drawn from 13 analysts polled by Refinitiv.It said the stronger than expected figures were mainly driven by the server and computing businesses, while revenue from its key consumer products, mainly smartphones, dropped more than 15 from a year earlier in the second quarter as the coronavirus pandemic hit global electronics demand.
Formally called Hon Hai Precision Industry Co Ltd, Foxconn had warned in May of bleak smartphone sales in the second quarter citing an enormous impact on demand due to the virus, but said the work-from-home lifestyles being adopted worldwide would offer new growth opportunities. In the third quarter, Foxconn expects overall revenue to post a yearly double-digit decline and revenue from the consumer electronics division to drop about 10 from a year earlier. Researcher IDC said global smartphone shipments fell 16 from a year earlier in the second quarter. Slideshow ( 2 images ) For Foxconn, though, the Apple connection would be a growth driver. More than 70 of the new iPhones could be assembled by Foxconn, helping the firms revenue resume growth in the fourth quarter, Taipei-based KGI Securities said. Foxconn Chairman Liu Young-way told an investor conference in Taipei that it is possible Foxconns gross margin could reach 7 next year, boosted partly by growth from its component business sector, which includes the production of key parts for electronics manufacturing. ![]() Liu said Foxconn was working to build two supply chains, one for China and one for the United States, pointing to the companys investments in Wisconsin, Mexico, Brazil and Southeast Asia as examples of it diversifying around the world. ![]() Taiwan dollars) Reporting By Yimou Lee; Writing by Ben Blanchard; Editing by Himani Sarkar and Muralikumar Anantharaman Our Standards: The Thomson Reuters Trust Principles. Apps Newsletters Advertise with Us Advertising Guidelines Cookies Terms of Use Privacy Do Not Sell My Personal Information All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays. Reuters. All Rights Reserved.
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