Foxconn's Hon Hai net profit up 41 percent in Q2

Foxconn is a major supplier for Apple and other top IT brands

Foxconn headquarters in Taipei.

Foxconn headquarters in Taipei.

Foxconn's Hon Hai Precision Industry reported a strong gain in net profit during the second quarter, but revenue growth for the Apple supplier continued to remain weak.

Hon Hai's net profit in the quarter reached NT$16.9 billion (US$564 million), up 40.8 percent from NT$12 billion in the same period a year ago, the company reported on Tuesday.

Revenue, however, increased year-over-year by only 0.4 percent, putting it at NT$895.6 billion.

Hon Hai is the main manufacturing arm for Taiwan-based Foxconn Technology Group and builds products for major tech vendors including Amazon, Microsoft and Nintendo. Apple, however, is the company's most important customer and makes up about 40 percent of Hon Hai's revenue, according to analysts.

In this year's first quarter, Hon Hai posted a 19.2 percent year-over-year decrease in revenue. Some analysts have attributed the decline to weak demand for Apple's iPhone 5 product.

Hon Hai's reported financials on Tuesday did not go into detail about the business conditions behind its results. But in June, Foxconn CEO Terry Gou apologized to company shareholders for Hon Hai's falling stock price. At the time, news reports had emerged that Hon Hai had also lost manufacturing orders for Apple's rumored budget iPhone to rival Taiwan-based Pegatron. Gou declined to name Pegatron, but said his company's competitors were using low prices on manufacturing to grab orders.

A budget Apple iPhone is rumored to go on sale later this year, alongside with the new iPhone 5S.

Despite its declining revenue, Foxconn is working to expand its manufacturing and research. Last month, Gou made a high-profile visit to the Chinese city of Guiyang, where his company plans to establish a new manufacturing facility that could build products for the nation's electronics market. Foxconn already has over 1.2 million workers in China.

The company is also investing in researching robotics to better automate its factory assembly lines. In addition, Foxconn wants to hire 3,000 software engineers in Taiwan to help the company make Mozilla's Firefox OS a viable mobile OS competitor.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags smartphonesbusiness issuesfinancial resultsconsumer electronicsFoxconn Technology GroupHon Hai Precision Industry Co.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?