iPhone 5s teardown

Hon Hai Precision Industry Co. — you might know them better has Foxconn, manufacturer of many things Apple — saw their net profit last year rise 13% on the back of increased sales of iPhone and iPad devices. Pegatron, another major Apple manufacturer that is the primary source of the iPhone 5c and iPad Mini, saw their earnings jump 22% in just the last quarter.

Both companies are dependent on Apple sales. Foxconn and Pegatron both draw more than 40% of their revenue from Apple, and both are expanding manufacturing in the United States for both marketing bonuses (made in the USA!) and cost savings on lower-volume devices. Devices like the Mac Pro, which is built in Texas. Motorola, too, has an assembly plant in Texas for custom Moto X smartphones.

Apple's impact on Foxconn and Pegatron cannot be understated. In the last quarter alone, Apple sold 51 million iPhones and a record 26 million iPads. While that didn't meet analyst expectations, it was still enough to turn a tidy profit for Apple, Foxconn, and Pegatron. The Wall Street Journal reports that despite the increase in orders and profits, Foxconn is still worried about a possible slow-down from Apple, and is working to trim costs to ensure they continue to rake in decent profits. They've also been diversifying, branding out into networking equipment and investing tens of millions of dollars in robotics manufacturing, software development, and facilities.

Source: The Wall Street Journal (Foxconn, Pegatron)