Foxconn Profits Jump 41 Percent On The Back Of Strong iPhone Sales

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Remember how just a few months ago, Foxconn profits were slumping because — as the anti-Apple brigade hysterically shrieked — the iPhone 5 was a dud, and the iPhone’s meteoric rise in popularity was finally done?

Yeah, well, Foxconn just posted a 41 percent year-over-year increase in profit, driven by strong iPhone sales.

During the second fiscal quarter of 2013, Apple was expected to sell between 25-27 million iPhones. Instead, they smashed right through that prediction, selling 30 million… a success that passed itself on to Apple’s largest manufacturing partner, Foxconn. Apple earned $6.9 billion last quarter, while Foxconn earnest $566.7 million.

Not bad, and certainly those numbers aren’t indicative of a failing iPhone. However, there is a strong argument to be made (and the Wall Street Journal makes it) that Foxconn is too reliant on the iPhone. 40 percent of Foxconn’s revenue comes from Apple, and the company is so tied to Apple in the eyes of investors that as Apple’s share price has slipped, so has Foxconn’s.

In the past, Foxconn has said it is going to diversify its business to become less reliant on Apple. Honestly, while Apple remains the most profitable gadget maker on Earth, that may be a hard feat to accomplish, especially with the iPhone 5S and 5C on the horizon.

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  • Market_Mayhem

    It’s amazing the way the news media goes out of their way to spread hate and lies about Apple for reasons unknown. In a weak economy, I don’t see what is so great about hoping for a company to fail. That would just put more people out of work. Even if Apple doesn’t sell as many iPhones as in the past I honestly don’t see how that indicates the company is failing. Smartphone sales are going to become cyclical as older smartphones die or get replaced. It’s being said that iPhones hold their value and are being used longer or are being resold so that could impact new iPhone sales to some degree. Selling 30 million older model iPhones in a quarter is nothing to scoff at when most companies can’t sell nearly that many of their latest smartphones.

    As it turns out, Apple isn’t doing as badly as some of the news that the bloggers and analysts continue to spread. It just doesn’t make any sense that a company of Apple’s wealth would just collapse overnight because of a couple of weak financial quarters. Apple may not be the same company as it was when Steve Jobs was alive, but he might have left ideas for the current management to follow for a few years.

About the author

John BrownleeJohn Brownlee is a Contributing Editor. He has also written for Wired, Playboy, Boing Boing, Popular Mechanics, VentureBeat, and Gizmodo. He lives in Boston with his wife and two parakeets. You can follow him here on Twitter.

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