Taiwan’s Foxconn, which assembles iPhones for Apple, reported that earnings in the first quarter had increased due to the work-from-home boom sparked by the COVID-19 pandemic, which fueled demand for devices such as smartphones and laptops the past has risen.
The world’s largest manufacturer of contract electronics also expects continued growth in the second quarter. He expects consumer electronics and computer product sales to grow more than 15 percent year-over-year, extending sales growth in the first quarter.
Officially known as Hon Hai Precision Industry Co, the company’s net income rose from January to March from $ 2.1 billion in the previous year to $ 28.2 billion ($ 1 billion) when the company’s business was through The early outbreak of the COVID-19 pandemic was badly hit. The result, a 13-fold jump, was well above an average forecast of T $ 24.41 billion, which was compiled from the estimates of 11 analysts at Refinitiv.
Foxconn said sales of its mainstay in consumer electronics, including smartphones and portable devices, rose more than 15 percent year over year in the first quarter, while computer products such as laptops also grew more than 15 percent.
Sales in the first quarter rose 45 percent year-on-year to T $ 1.34 trillion. Previously, the company had expected first-quarter sales for the season to be “better than normal” thanks to strong sales of smartphones and teleworking devices
However, Foxconn said it was closely monitoring “material shortages” in the consumer electronics supply chain amid a semiconductor supply crisis that has hit the auto industry, even though the impact has been described as “limited”.
It assembles iPhones at plants in China and India, with the latter now being hit by the spread of the coronavirus
Foxconn shares are up 14 percent this year. They were up 1.5 percent on Friday, compared to a 1 percent increase for the broader market ($ 1 = $ 27,9500 Taiwanese dollars).
© Thomson Reuters 2021