Healthy sales of Apple's iPhone are being credited with lifting Foxconn (Hon Hai Precision Industry Co.) profits last quarter by a sizable margin.
The world's biggest contract manufacturer of electronics saw its net profit climb to $566.7 million USD for the three month period that ended in June. Easily topping Wall Street analyst expectations, Foxconn's 1% rise in second-quarter net profit is being attributed to strong iDevice sales.
Unfortunately for Foxconn, however, as Apple more aggressively turns its attention toward other manufacturers in the Asia, Foxconn may not be able to sustain this growth. Even if Apple's relationship with Foxconn remains unchanged, Apple isn't quite the tech juggernaut it was just twelve months ago. As Apple's growth momentum slowed in early 2013, shares of Hon Hai Precision Industry Co. have tanked to the tune of 12% this year.
Last month, Apple said its fiscal third-quarter net profit fell 22% from a year earlier to $6.9 billion on roughly flat revenue of $35.3 billion, even though the company sold 20% more iPhones than a year earlier.