Despite “weaker” orders from Apple during the second quarter, Foxconn managed to post revenue that beat analyst estimates thanks to its increased focus on televisions. The company announced revenue of NT$897 billion ($30 million) over the three-month period, which is 0.6% higher than its second-quarter revenue for 2012, and better than the NT$829 billion expected by analysts.
Foxconn has been forced to share Apple orders with rival company Pegatron in recent months, and on top of that, iPhone demand has been falling. In the first quarter, Foxconn revenue dropped 9.9% as a result.
But CEO Terry Gou promised shareholders that profit will climb, and he’s currently betting on TVs to make that happen. He’s even invested a whopping $840 million on a 37.6% stake in Sharp to secure its large LCD panels.
But Arthur Liao, an analyst with Fubon Financial Holding Co. in Taipei, has questioned whether Foxconn’s success in TVs can be sustained.
“It’s definitely a surprise with only some areas like TVs being the bright spots because iPhone is still weak,” Liao told Bloomberg. “The question is whether it can be sustained because new Apple devices won’t come until the end of the third quarter.”
Whether Foxconn’s TV sales continue to do well or not, the company will almost certainly have a busy third quarter as it ramps up production of Apple’s next-generation iOS devices for release this fall. In addition to an iPhone 5S, we’re also expecting new iPads, a new low-cost iPhone, and maybe — just maybe — an iWatch.
- Source Bloomberg