Apple supplier Foxconn experiences a surge in sales and profits
from MacBooks & iPads in Q2 due to COVID-19 lockdowns.
The upbeat forecast by the world's biggest contract
electronics manufacturer reinforces strong growth momentum that saw its
first-quarter profit rocket with revenue rising by 45%, even as it is forced to
sharply reduce iPhone production in India due to surging coronavirus cases
there.
It also echoes Apple's own positive outlook. In April the
tech giant said it expected revenue for the June quarter to grow by
"strong double digits".
"Smartphone demand remains strong ... we will see
relatively strong growth (on the year) in the second quarter," Chairman
Liu Young-way told an online investors conference.
Officially known as Hon Hai Precision Industry Co, Foxconn said January-March net profit surged to T$28.2 billion ($1 billion) from T$2.1 billion a year earlier, when business was badly hit by factory disruptions early in the outbreak of the COVID-19 pandemic.
The result was well above an average forecast of T$24.41
billion compiled from 11 analysts' estimates by Refinitiv, and up 42% up from
first-quarter 2019 net profit.
Foxconn said sales from its major revenue contributor -
consumer electronics including smartphones and wearable devices - climbed more
than 15% in the first quarter from a year earlier, while computing products
such as laptops also rose more than 15%.
First-quarter revenue rose 45% from a year earlier to T$1.34
trillion. That was Foxconn's highest ever first-quarter revenue, marking a 28%
jump from the same period in 2019.
The company had previously expected first-quarter revenue to
be "better than normal" for the season thanks to strong sales of
smartphones and telecommuting devices. Foxconn said it was closely monitoring
"materials shortages" in the consumer electronics supply chain, amid
a crunch in semiconductor supplies that has hit the auto industry, though
described the impact as "limited". It assembles iPhones at plants in
China and India, the latter now ravaged by the spread of the coronavirus.
Foxconn's shares have risen 14% this year. They ended up 1.5% on Friday, compared
with a 1% rise for the broader market. - Reuters
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