Foxconn Posting More Revenue than Several Analyst Expectations

By: Ali Raza  |   July 20th, 2013   |   Apple, Business, iOS, News

Hon Hai Precision commonly known as Foxconn stunned everyone when it declared excellent revenues that have beaten all estimates which analysts had predicted in the light of low orders of iPads and iPhones order from Apple. According to the Bloomberg’s report, the Taiwan-based manufacturer announced a revenue of $30 billion for the second quarter of 2013, which is 0.6 percent more than what Foxconn has posted in the same period during last year and more importantly it was way more than the estimates of 13 different analysts collected by the media outlet.

 

Sources familiar with the matter have revealed that after Foxconn was pushed to share Apple’s iOS device orders with its arch rival Pegatron Corp, the Chinese company deciding to shift gears and is now planning to build televisions and also looking to manufacture other products in order to increase its earnings. In addition to this, contract phone maker FIH Mobile Ltd. in which Foxconn has roughly 70 percent share may have also helped the company post excellent revenue, as the Hon Kong-listed company has shown a turnaround.

 

“It’s definitely a surprise with only some areas like TVs being the bright spots because iPhone is still weak,” said Arthur Liao, who has a reduce rating on the stock at Fubon Financial Holding Co. in Taipei. “The question is whether it can be sustained because new Apple devices won’t come until the end of the third quarter.”

 

“More aggressive sales of large-screen TVs, as well as increased orders from Chinese clients including Beijing-based smartphone vendor Xiaomi Corp., may have helped offset the weakness in Apple devices,” Fubon’s Liao said.

 

Officially Foxconn will issue its net income for the second quarter of 2013 during next month. Till then we have to wait, as the net income of the Taiwanese company will reveal the actual financial status of Foxconn. However, one thing is for sure, Hon Hai’s revenue will not depend on Apple orders because apart from building televisions, Foxconn has also recently signed a deal with Mozilla to build inexpensive Firefox OS-based handsets.

 

Besides building products for other companies, Foxconn also has plans to produce devices under its own brand name. This will enable the company to stand among the other tech giants, which are producing their own products. Therefore, it is expected that looking beyond Apple would not hurt Foxconn. In fact, it may give the company a new identity and rise as a brand.

 

Source: iPhoneinCanada