New | Hon Hai rings up third quarterly gain in a row on strong iPhone sales
Taiwan’s Hon Hai Precision Industry reported a third consecutive gain in quarterly profit as the world’s largest contract maker of electronic goods continued to benefit from demand for products from Apple, its top customer.
Hon Hai, which operates as Foxconn Technology, earns as much as 50 per cent of its revenue assembling Apple devices such as iPhones and iPads, analysts say.
Still-hot sales of iPhones drove Hon Hai’s net profit in the April-June quarter to NT$20.19 billion (HK$5.2 billion), beating the NT$17.66 billion mean estimate of 13 analysts polled by Reuters.
The result edged past the NT$19.54 billion earnings in the January-March quarter and was 15 per cent higher than the NT$16.98 billion in the second quarter of last year.
It’s hard to see [Hon Hai] growing really rapidly in the near future
In the second quarter, Hon Hai took two leaps in a strategy aimed at reducing dependence on assembling a relatively narrow range of devices for a single customer.