Apple supplier Foxconn posted a better-than-expected 23% rise in quarterly profit on Wednesday and forecast slight growth in its core business next year.
The latest solid showing from the world’s largest contract electronics manufacturer should ease investor concerns over weak global demand, as it comes on the heels of Apple’s positive earnings forecast for the year-end holiday quarter.
Foxconn, Taiwan’s tech bellwether and second-biggest company by market value, reported a net profit of T$30.7 billion ($1.0 billion) for the July-September quarter, versus an average forecast of T$27.75 billion by 12 analysts compiled by Refinitiv.
“We predict an improving outlook for Hon Hai in 2020 thanks to better iPhone shipments,” KGI Securities said in a report ahead of the results, referring to Foxconn’s official name Hon Hai Precision Industry Co.
KGI expects iPhone shipments to grow up to 10% in 2020 and said higher demand for new technologies such as fifth-generation (5G) mobile technology could also help Foxconn boost sales and margins.
MacDailyNews Take: More good news for Apple as the “iPhone 5G” super cycle looms!