“Hon Hai Precision Industry Co., the major assembler of Apple Inc iPhones, posted its slowest profit increase in a year as tepid personal computer sales put at risk Terry Gou’s pledge for 10 percent annual revenue growth,” Tim Culpan reports for Bloomberg.
“Hon Hai, the largest company in billionaire Gou’s Foxconn Technology Group, posted revenue growth of 5.8 percent for the 10 months through October as sales of devices other than Apple’s such as PCs and consumer electronics slow,” Culpan reports. “Apple sold more than 10 million units of the iPhone 6 and iPhone 6 Plus in its opening weekend in September, and forecast sales that surpassed analyst estimates.”
Culpan reports, “Apple, which last year accounted for 51 percent of Hon Hai’s sales, last month forecast revenue for the three months through December of $63.5 billion to $66.5 billion, just topping the average of analysts’ estimates at the time.”
Read more in the full article here.
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It’s a good job Hon Hai don’t have an ‘onerous and one sided’ contract with Apple. Fortunately they are doing so well by providing what Apple needs that it’s offsetting the losses created by their PC manufacturing division.
It’s funny how TSMC, Hon Hai and countless others are making money hand over fist from lucrative contracts with Apple while GT still try to claim that Apple treats suppliers unreasonably.
Even Microsoft doesn’t make any money from PC sales. In fact it doesn’t break even in most cases.
The only ones taking revenue from the deal are Indian call centre workers pretending to be from Microsoft support. This effectively defines the windows ecosystem today – consumers pay money to fake staff in Bangalore. And Microsoft hopes to get a cut of that action just to stay afloat.