Foxconn Technology Group (FXCNY) , the world's biggest electronics manufacturer and Apple Inc.'s (AAPL) - Get Report most important supplier, posted stronger-than-expected third quarter profits and forecast solid revenues for the coming year amid an expected jump in post-pandemic demand for new smartphones and laptops.
Foxconn, formally known as Hon Hai Precision Industry Co. Ltd., said net profits for its September quarter rose 1% to T$30.8 billion, or just under $1.1 billion, and came in ahead of analysts' forecasts of a T$28.6 billion tally. Group revenues fell 7% from last year to T$1.29 billion, Foxconn said, while profit margins improve by 20 basis points to 2.39%.
Foxconn said it sees current-quarter revenues within a range of -3% to +3% when compared to last year, but notes that 2021 sales will grow by around 10% amid what it sees as strong demand for consumer electronics in general and the iPhone 12 more specifically. Apple typically accounts for around half of Taiwan-based Foxconn's annual revenue.
Apple shares were marked 0.13% higher in early trading Thursday to change hands at $119.65 each.
Apple's smartphone revenues for its September quarter fell 20.7% from last year to $26.44 billion thanks in part to the late launch of the iPhone 12, which was unveiled in mid-October. China revenues were also disappointing, falling 28.6% to $7.95 billion.
Wedbush analyst Dan Ives, a consistent and long-term Apple bull, lifted his Apple price target to $600 per share in September, has argued that the iPhone 12 "represents the most significant product cycle for Cook & Co. since iPhone 6 in 2014" as well as a "defining chapter in the Apple growth story".