'Season of hot sales': Apple supplier Foxconn logs surprise jump in Q3 profit. Details here
Apple Inc supplier Foxconn to log a surprise profit of 11 percent in the third quarter. This came as a surprise as the Taiwanese phone manufacturer was anticipating a fall in revenue during the July-September period.
For 2024, the world's largest contract electronics maker has a "relatively conservative and neutral" outlook, its chairman, Young Liu, said, adding that expected growth of 5% for the market "could easily be offset by geopolitics." Net profit for the July-September quarter came in at T$43.1 billion ($1.3 billion), beating market estimates for an 11% drop and despite a sharp 12% tumble in revenue that was a second straight quarter of decline. Income from investments in subsidiaries, interest revenue and foreign exchange gains quadrupled during the quarter, the company said.
Liu added that while the Taiwanese company did expect revenue to continue to fall in the important holiday season quarter, its performance was likely to be a bit better than previously expected with the decline slight. "We have entered the traditional season of hot sales in the second half and our operations are set to gradually improve quarter on quarter," he told an earnings briefing.
Apple, which in September launched a new series of iPhones, this month gave a sales forecast for the holiday quarter that missed Wall Street expectations, hurt by weak demand for iPads and wearables. Foxconn said it expects to embark on capital expenditure of more than T$90 billion in 2024 - in line with this year, the bulk of which would be spent on expanding its business in China.
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