Foxconn reports 2nd quarter profits better-than-expected

The contract electronics manufacturer, Foxconn, posted a better-than-expected quarterly profit on Wednesday.

Foxconn, the world’s largest contract electronics manufacturer, posted a better-than-expected quarterly profit on Wednesday, as rising telecommuting demand in the midst of Coronavirus pandemic offset slowing smartphones sales.

Tech giants such as Apple, client of Foxconn reported a net profit of T$22.9 billion($778.54 million) for the second quarter ended June. According to Reuters calculations that was up about 34% from a year earlier and better a consensus estimates of T$17.95 billion drawn from 13 analysts polled by Refinitiv. But Foxconn immediately didn’t provide any other information.


The Firm also known as Hon Hai Precision Industry Co Ltd, had in May caution of bleak smartphone sales in the second quarter quoting as an “enormous” impact on demand due to the virus, but said the adoption of  work from home lifestyle worldwide will offer new growth opportunities.

Researcher IDC said a year earlier in the second quarter global smartphones shipments fell 16%. Analyst, however, is of view that Apple’s new lineup of iPhones, set to be launched in autumn, to boost Taipei-based Foxconn’s revenue recovery in the coming months .

Taipei-based KGI Securities said that more than 70% of new iPhones could be assembled by Foxconn to help the firms’s revenue growth in the fourth quarter.

Ahead of the results, Shares in the company closed 2% higher versus a 0.9% fall for the broader market. Foxconn shares have lost more than 10% this year.