Apple manufacturer Foxconn announces record $131.8 billion earnings

foxconn-denies-strike-report

Having reportedly snagged the bulk of iPhone 6 orders from Apple, Taiwanese manufacturer Hon Hai Precision Industry, a.k.a. Foxconn, has every reason to be happy.

Earlier today it announced record breaking consolidated revenues of $131.82 billion for last year, while company chairman Terry Gou commented that he expects this year’s earnings to be even better.

Interestingly, Gou had some choice words to say about wearables, however — which is slightly surprising given how closely the company’s success is tied to Apple, which is expected to enter the wearables market with its forthcoming iWatch, supposedly coming this October.

Speaking about the future of mass market tech, Gou dismissed wearable devices —  saying that they headed in two development directions: one being as a fashion accessory, and the other an extension of smartphones. Gou believes that neither direction will go all that far.

His superior idea for development? Smart robots. Foxconn has been pursuing this line of business for some time, and has separated it into two main fields: robots for factories, and robots for consumers — which are used for applications such as enterprise activities or medical care.

Gou did, however, leave some wiggle room in his comments, by saying that wearable devices which combine with personal health monitors have the potential to become useful, while the existence of a strong ecosystem to support the device will help make it more than just a short-term toy.

Foxconn is the second-largest phone handset maker in the world in terms of annual shipments, with only Samsung shipping more units. It is also the world’s largest tablet maker.

  • artman1033

    record “profits”? I think you mean revenue in the headline

    • rattyuk

      And who is this TERRY GUO? The guy who runs Foxconn is Terry Gou.

      Attention to detail and understanding what is being written about seems to not be a very strong Cult of Mac ability.

      • Adrayven

        Grou? he’s the goofy bad guy in Despicable Me.. great movie.. :D

  • Shane Martin

    If I paid my employees .10 /hr I would have record profits every year too.

    • mahadragon

      Your comparison doesn’t hold any water. For one, Foxconn’s 800,000+ employees live on campus. When you take into consideration Foxconn also houses and feeds their employees, suddenly that hourly pay takes on a whole different context. How much money do you think it takes to house and feed 800k people? And, by the way, that’s basically a large city. San Francisco’s population is 825k if you want a comparison. You also need infrastructure like police, fire, medical, etc. Add that up smart guy, and see what your numbers look like.

  • Andy Shorrock

    Gou dismissed wearable devices – saying that they headed in two development directions”

    Steve Jobs said no one reads books anymore, just before announcing iBooks.

    Gou’s dismissal of wearable devices could be because his company’s not building Apples’ iWatch – sour grapes nothing more.

About the author

Luke DormehlLuke Dormehl is a UK-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Formula: How Algorithms Solve All Our Problems, And Create More and The Apple Revolution, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme, and other publications. He'd like you a lot if you followed him on Twitter.

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