What you need to know
- Apple supplier Foxconn has reported better-than-expected revenue figures thanks to robust demand for the iPhone 12
A new report says that Apple supplier Foxconn has cashed in on "robust" demand for the iPhone 12.
Main iPhone assembler Hon Hai Precision Industry Co. reported higher-than-expected quarterly revenue thanks to robust demand for Apple Inc.'s new 5G devices. The Taiwanese company's sales in December totaled NT$713.8 billion ($25.5 billion). Revenue in the quarter reached a record NT$2 trillion, according to Bloomberg News's calculations based on previously released monthly sales figures, beating the average estimate of NT$1.8 trillion.
The report notes that the "strong showing" could well indicate that demand for Apple's latest flagship iPhone lineup has surpassed expected levels.
The report cites Wedbush analyst Dan Ives. Notoriously optimistic when it comes to Apple stock, Ives reportedly wrote that Apple's prospects "have now exceeded even our 'bull case scenario' for units in FY21," which Ives says will be "a major positive for shares over the coming months."
The report continues:
Hon Hai is the exclusive assembler of the top-of-the-line iPhone 12 Pro and iPhone 12 Pro Max. Its sales for 2020 came in at NT$5.4 trillion, up slightly from NT$5.34 trillion in 2019 after Covid-era demand for connected gadgets offset a global economic downturn. Chairman Young Liu has said he expects Hon Hai sales to grow by single digits in 2021, while its automotive-related business will be "very good" in the first half.
Foxconn shares are up 13% in just two days on the back of reports it has signed a deal with Chinese EV maker Byton ltd.