Applier supplier Foxconn sales hit new record high

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Foxconn
Foxconn is Apple's biggest contract manufacturer.
Photo: CBS

Life is good if you’re Apple’s biggest contract manufacturer! Foxconn, a.k.a. Hon Hai Precision Industry, has reported its highest-ever August sales in the company’s 45-year history.

Foxconn sales hit $12.76 billion for August. That’s up 0.2% from one month earlier. This is the sixth consecutive month in which Foxconn has registered month-on-month increases. While it can’t necessarily all be chalked up to Cupertino, Apple represents more than 40% of Foxconn’s total sales.

In a statement, Foxconn said that its strong August sales is the result of three divisions. These are its communication device, computing, and consumer electronic gadgets divisions.

It is highly likely that one of the big drivers for the sales boost is Apple’s iPhone 11 manufacturing. This is the time of year when contract manufacturers are working flat-out to get iPhones ready for the holiday quarter.

While analysts are expecting iPhone sales to remain flat, this is still the biggest contract Foxconn handles each year. Apple suppliers are supposedly reading up to 80 million iPhones for the iPhone 11 launch. Along with Pegatron, Foxconn will be assembling many of these.

Foxconn sales: Succeeding in a tough time

Foxconn’s record months are particularly impressive at a time when the U.S. and China are engaged in a trade war. Most of Foxconn’s iPhones are made at its Zhengzhou plant in the Henan Province. However, in the past Foxconn has said that it has the capacity to make all of Apple’s iPhones, bound for the U.S., outside of China. Foxconn has explored moving more of its operations overseas. This is in line with a request Apple has made to its suppliers.

Foxconn recently came under fire for hiring underage workers. The U.K.’s Guardian newspaper broke the story that Foxconn drafted in teenaged employees from schools and technical colleges. In exchange for finding recruits, Foxconn paid schools 500 yuan ($70) a month per pupil.

The contract supplier has also had a significant year due to the handing over of operations from founder Terry Gou. Gou plans to run as President of Taiwan.

Are you excited about the new iPhone 11? What are your hopes for the new devices? Let us know in the comments below.

Source: Focus Taiwan