Foxconn’s third-quarter profit growth was nearly unchanged

Smartphone products still contribute nearly half of Foxconn’s third quarter revenue.

According to the Foxconn Report released on Thursday, their quarterly profit was almost unchanged, exceeding expectations. This is mainly due to the continuing trend of working from home and the market with strong demand for remote office equipment.

Calculations of Reuters based on 9-month data from Foxconn showing that the Taiwanese company’s customers including Apple (Apple Inc.) and other tech giants helped Foxconn achieve a net profit of NT $ 30.8 billion ( $ 1.08 billion) from July to September. In contrast, Refinitiv compiled the average expectations of 13 analysts and Foxconn’s estimate was NT $ 28.61 billion. Compared to NT $ 30.7 billion in the same period last year, profit growth was nearly unchanged.

Foxconn Chief Financial Officer David Huang said at a meeting with investors that the company’s third-quarter revenue fell 7% due to customer delays in product launches. However, according to Foxconn President Liu Young-way, Foxconn believes that market demand for smartphones and servers is “stronger than expected” and Apple’s new iPhone 12 shipments will support sales. esteemed company.

Foxconn, formerly known as Hon Hai Precision Industry Co., Ltd. (Hon Hai Precision Industry Co Ltd), says revenue is expected to grow about 10% on this basis next year. In the third quarter, consumer electronics products, including smartphones, accounted for 41% of Foxconn’s quarterly sales, followed by cloud computing devices, which accounted for 28% and other computing products such as laptops, accounting for 24%.

Foxconn It previously predicted its revenue-boosting smartphone business would perform weakly this quarter, but the company says a worldwide model of home-work will drive business growth. .

Data from research organization IDC shows that global smartphone shipments fell 1.3% year-on-year, demonstrating a reduced market demand. Analysts say Apple’s new iPhones could drive more sales in the coming months.

Before the earnings report, Foxconn shares closed up 0.4% and broader market fell 0.3%. Up to the present time, this index has decreased by about 10%.

Phong Vu

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