Wednesday, March 27, 2013

Hon Hai shows record profits, keeps making money from making iPhones

Hon Hai Precision, also known as Foxconn Technology, has reported its earnings for the year and notched a net income of $3.2 billion according to the Financial Times. Most familiar as the manufacturing muscle behind Apple's iPhones, iPads and the like, the Taiwan-based manufacturer beat analyst predictions on high margins for those products. Its subsidiary, Foxconn International Holdings, is the world's largest cellphone maker and produces devices for companies including Nokia and Motorola, but suffered a net loss of $316.4 million. As a result, some are concerned about Foxconn's heavy reliance on Apple as a customer going forward.Still, the company is reportedly continuing a plan to increase vertical integration, by manufacturing the parts for devices and not just putting them together -- we'll see if anyone notices changes in the final product anytime soon.

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Source: FT, BBC, Bloomberg

Source: http://www.engadget.com/2013/03/26/hon-hai-profits/

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