What you need to know
- Foxconn has posted its financial results for Q2.
- The Apple supplier earned a lot more money than analysts expected.
- Demand for products has been spurred by the pandemic.
Apple's main iPhone supplier has posted net profit of T$22.9 billion for the second quarter of 2020, beating a consensus estimate from analysts by more than T$5 billion.
As Reuters reports:
Foxconn, the world's largest contract electronics manufacturer (2317.TW), reported a better-than-expected quarterly profit on Wednesday, as rising telecommuting demand amid the coronavirus pandemic offset slowing smartphone sales.
Foxconn, whose clients include tech giants such as Apple AAPL.0, reported a net profit of T$22.9 billion ($778.54 million) for the second quarter ended June.
The bumper result marks a 34% year-on-year increase and is well above analysts' predictions of T$17.95 billion, the consensus among 13 surveyed.
As the report notes, Foxconn had previously warned that it expected "bleak smartphone sales" in Q2, due to the pandemic's "enormous" impact on people's lives. It did however note that rising demand in other sectors, notably tablets and laptops would provide new opportunities for growth. As expected, whilst smartphone sales have fallen during the pandemic, many have turned to tablets and laptops to cope with remote working, learning, and communication. Clearly, the shift has been enough to allow Foxconn to continue making plenty of money.
The report states that Foxconn is expected to assemble around 70% of Apple's iPhone 12 lineup, which will obviously be a huge boost to the company in Q4 and beyond into 2021.
Apple posted its own bumper numbers for Q3 at its most recent earnings call, including a rise in iPad, Mac and wearables sales.