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Foxconn earnings get a boost thanks to the popularity of the iPhone 6

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Strong demand for Apple's latest iPhones led Foxconn to new heights, with Apple's primary device assembler posting its highest first-quarter growth in ten years.

 

 

Foxconn saw record-high profits in the first three months of 2015, thanks in large part to the strong demand for the iPhone 6 and iPhone 6 Plus. Apple's primary manufacturing partner in China, which is also known as Hon Hai Precision Industry, saw its earnings jump by 56% over the previous year, following Apple's success in the same time frame.

 

From The Wall Street Journal

 

Hon Hai Precision Industry Co., Apple Inc.'s major assembler, rode strong demand for large-screen iPhones to its highest first-quarter profit growth in a decade, and with investors clamoring for higher returns it roughly doubled its stock dividend. The Taiwan-based company's earnings rose 56% from a year earlier, exceeding 33% profit growth for the fourth quarter, a peak period as consumers splurge on gadgets during the year-end holiday season.

 

The relationship with Apple is an important one for Foxconn. The company derives almost half of its revenue from Apple. They are said to be building a $2.6 billion display facility for a single client, which would most likely be Apple.

 

Source: The Wall Street Journal

 

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