Foxconn group to see iPhone 8 windfall in the second half of 2017
Hon Hai expected to see an upsurge in operating margins for fiscal 2017, say analysts
The huge potential of the much-speculated, tenth-anniversary iPhone has analysts predicting a windfall for Taiwan’s Hon Hai Precision Industry, the world’s largest contract electronics manufacturer known widely as Foxconn Technology Group.
Apple is expected to launch the “iPhone 8” in the second half of this year, with the top-of-the-line model assembled by Hon Hai to feature an advanced organic light-emitting diode (OLED) display.
Citi Research analysts William Yang and Winnie Tao said on Friday that Hon Hai is poised to significantly revive its operating margin, a key measure of profitability, after they upgraded the company’s shares to “buy” on February 6.
Hon Hai’s operating margin is forecast to reach 3.8 per cent for its upcoming fiscal 2017 that ends in March next year, up from an estimated 3.6 per cent for its fiscal 2016 that ends in March this year, according to the earlier Citi report.
The Citi analysts estimated that a single percentage point expansion in operating margin would mean NT$43.9 billion (HK$10.96 billion) in profit for Hon Hai.