Foxconn, formally known as Hon Hai, the supplier to Apple for iPhones, announced on Tuesday that its third-quarter profit increased 11.27% from the previous year, above analysts’ estimates in spite of the continuous decline in consumer electronics sales.
These are Foxconn’s results for the September-end quarter relative to the LSEG consensus estimates:
Revenue: NT$1.559 trillion predicted, but $1.543 trillion in New Taiwan dollars ($47.71 billion) were received.
Revenue: NT$43.12 billion, against an estimated NT$35.078 billion
The Taiwanese company revealed that while net income climbed 11.27% to NT$43.13 billion from a year earlier, exceeding analysts’ estimates, operating revenue decreased 11.64% to NT$1.543 trillion. In the same time frame last year, Foxconn declared a net profit of NT$38.75 billion.
Consumer goods like Apple’s iPhones are assembled by Hon Hai Technology Group, the largest contract electronics manufacturer in the world.
According to data provided by Counterpoint Research, third-quarter worldwide smartphone sell-through volumes increased by 2% on a quarter-over-quarter basis, but fell by 8% on an annual basis, marking the ninth consecutive quarter of declines and the lowest third-quarter levels in a decade.
When a customer purchases an item straight from a store, this is known as a sell-through.
The global smartphone market’s downturn is slowing down, according to research firm Canalys, which reported this last week. Based on data from Canalys, the market fell by just 1% in the third quarter of 2023.
According to Canalys on October 17, “the smartphone market saw a double-digit sequential gain in third quarter, ahead of the sales seasons,” helped by demand for new products and regional recoveries.
“This quarter’s market was electrified by Huawei and Apple’s new releases, surpassing the flagship series renewals of many other vendors,” Canalys analyst Amber Liu said. She also mentioned that Huawei’s Mate 60 Pro, the company’s most recent smartphone, is seeing “enthusiastic” demand in Mainland China since its September launch.
Source (CNBC)
