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Foxconn Q2 earnings up 20% on demand for Apple products and more

Foxconn Q2 earnings were up 20% year-on-year thanks to demand for Apple products and other electronics made by the company. Around half of the company’s revenue comes from Apple …

Yahoo! Finance reports.

IPhone assembler Hon Hai Precision Industry Co. reported a 20% jump in second-quarter revenue as the pandemic continues to drive demand for electronics from Apple Inc. and other clients.

Revenue in the three months through June rose to NT$1.36 trillion ($48.7 billion), the Taiwanese manufacturer reported, versus estimates for NT$1.34 trillion.

The strong showing from the world’s largest contract electronics maker suggests demand for iPhones, gaming consoles and servers remains robust as consumers snatch up devices for remote work, home-schooling and entertainment needs. Companies are also spending on technology, expanding data-center infrastructure to better serve customers’ online activities.

Demand for Apple products was boosted during the pandemic, due to people working and studying from home, and needing more home-based entertainment during lockdowns.

COVID-19 has, however, led to chip shortages that Apple has warned will affect the supply of both iPads and Macs.

The supply shortages in the fiscal third quarter will primarily impact the Mac and iPad lineups, Cook and CFO Luca Maestri explained during the call. “We expect to be supply-gated, not demand-gated,” Cook told analysts.

Additionally, the pandemic has resulted in loss of production capacity when workers are infected. In particular, vaccine supply has been problematic in Taiwan thanks to Chinese interference. Apple had been trying to help before a deal was struck for key suppliers Foxconn and TSMC to step in.

Apple suppliers TSMC and Foxconn are working on buying millions of doses of COVID-19 vaccines for Taiwan. The plan is for the two companies to buy the vaccines, then donate them to the government for distribution to the people of the island nation.

Photo: Ramal Wickramasinghe/Unsplash

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