Foxconn Profit Up As iPhone Production Glitches Fade
March 30 2018 - 11:42AM
Dow Jones News
By Yoko Kubota
BEIJING -- Foxconn Technology Group posted a
better-than-expected 4% rise in fourth-quarter net profit, bouncing
back after its biggest customer Apple Inc. overcame earlier
production troubles for the iPhone X.
Taiwan-based Foxconn, which assembles Apple's iPhones in China,
reported 71.7 billion New Taiwan dollars ($2.5 billion) in profit
for the quarter ended Dec. 31, up from 68.8 billion New Taiwan
dollars in the like period one year ago.
The net profit beat the 64.4 billion New Taiwan dollars average
estimate of analysts polled by S&P Capital IQ.
Quarterly revenue rose 23% to 1.7 trillion New Taiwan
dollars.
Foxconn, known formally as Hon Hai Precision Industry Co., is
the world's largest contract electronics maker. In the third
quarter, Foxconn's profit fell 39% over the year-earlier period,
likely hit by production troubles for the iPhone X that pushed back
the start of sales to November.
Apple booked an all-time high revenue last quarter and said in
February that the iPhone X, with a starting price of $1,000,
boosted the average selling price for iPhones by nearly 15%.
For 2017, Foxconn posted a net profit of 138.7 New Taiwan
dollars, down 7% from a year ago, and revenue of 4.7 trillion New
Taiwan dollars, up 8%.
Foxconn's chairman Terry Gou has been moving to expand the
company's business beyond contract manufacturing. In a move to
bolster consumer brands, a Foxconn unit recently agreed to buy
smartphone and electronics accessories maker Belkin International
Inc. for $866 million.
Another subsidiary Foxconn Industrial Internet Co., makers of
smartphones and wireless equipment components, recently won
approval from China's securities regulator to launch an initial
public offering that will raise at least 27.3 billion yuan (US$4.3
billion) on the Shanghai Stock Exchange.
The unit said it plans to use the funds to invest in cloud
computing, 5G technology and smart manufacturing.
Write to Yoko Kubota at yoko.kubota@wsj.com
(END) Dow Jones Newswires
March 30, 2018 11:27 ET (15:27 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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