Strong demand for Apple's latest iPhones led Foxconn to new heights, with Apple's primary device assembler posting its highest first-quarter growth in ten years.
Foxconn saw record-high profits in the first three months of 2015, thanks in large part to the strong demand for the iPhone 6 and iPhone 6 Plus. Apple's primary manufacturing partner in China, which is also known as Hon Hai Precision Industry, saw its earnings jump by 56% over the previous year, following Apple's success in the same time frame.
Hon Hai Precision Industry Co., Apple Inc.'s major assembler, rode strong demand for large-screen iPhones to its highest first-quarter profit growth in a decade, and with investors clamoring for higher returns it roughly doubled its stock dividend. The Taiwan-based company's earnings rose 56% from a year earlier, exceeding 33% profit growth for the fourth quarter, a peak period as consumers splurge on gadgets during the year-end holiday season.
The relationship with Apple is an important one for Foxconn. The company derives almost half of its revenue from Apple. They are said to be building a $2.6 billion display facility for a single client, which would most likely be Apple.
Source: The Wall Street Journal