Foxconn Technology Co Ltd. (TPE: 2354), the world’s largest electronics maker and Apple Inc. (NASDAQ:AAPL) reported better-than-expected earnings for the second quarter on Wednesday. However, the company warned that waning demand for smartphones would keep revenues in check as we move into the fall.
Foxconn Technology Co Ltd. (TPE: 2354), which used to be called Hon Hai Precision Industry Co. Ltd., said that its net profits for the quarter ending in June rose 11.8% to T$33.29 billion, or just over $1.1 billion. This was more than the T$31 billion that analysts had predicted. Foxconn Technology Co Ltd. (TPE:2354) said that group sales went up 12% from last year to T$1.5 trillion, and profit margins went up 33 basis points to 2.94%.
Foxconn Technology Co Ltd. (TPE:2354) said that it expects smartphone sales for the current quarter to be the same as last year. It cited “geopolitics, inflationary pressure, and the Covid pandemic” as reasons. However, solid demand in its cloud and networking products divisions should help. About half of Foxconn Technology Co Ltd. (TPE: 2354)‘s annual revenue comes from Apple Inc. (NASDAQ: AAPL), which is based in Taiwan.
Chairman Young Liu pointed out that in the face of slowing demand and disruptions in the supply chain, the Group’s high level of resilience is shown by its strong operating performance. This shows a better customer structure and range of products.
Apple’s Revenue Growth
About a month ago. Apple Inc. (NASDAQ:AAPL) didn’t give specific revenue guidance for the September quarter after its earnings for the third quarter were better than expected. However, the company did say that overall revenue growth would likely be faster than growth for the three months ending in June.
Apple Inc. (NASDAQ:AAPL) said that strong demand in China and a small hit to the supply chain helped iPhone sales rise 2.8% from the same time last year to $40.67 billion in the June quarter, which was just above the $40.5 billion that Wall Street had predicted.
Overall, Apple Inc. (NASDAQ:AAPL) made more than $19.44 billion in its fiscal third quarter. Sales went up 2% from the same time last year to $82.96 billion, which was just above the $82.88 billion that analysts had predicted.
At the start of trading on Wednesday, Apple Inc.’s (NASDAQ:AAPL) shares were 1.8% higher and were going for $167.92 each.
Featured Image: Megapixl @Lester69
