14 DAY TRIAL // WSJ reports that Foxconn has reported a massive increase in profits in its second fiscal quarter, aided by iPhone sales.
“Hon Hai Precision Industry Co., assembler of Apple Inc.'s iPhones and iPads, posted a 41% rise in second-quarter net profit, helped by strong iPhone sales,” the financial newspaper reports.
The publication cautions that Hon Hai, trading under the name “Foxconn,” is not out of the woods yet. Since it rakes in over 40 percent of its profits solely based on Apple orders, whenever Apple fails, it fails as well.
But the Cupertino giant is expected to introduce a new line of products this fall, “which would help pad Hon Hai's earnings in the second half of the year, typically a strong selling season for technology companies due to the back-to-school and holiday shopping seasons,” according to the paper.
This year Apple reportedly split iPhone orders between Foxconn and Pegatron, the latter being assigned to build a low-end version of the phone made from plastic.