Foxconn Building-2

Foxconn Electronics Sees Jump in Revenue

October 12, 2015 - Written By Fernando Bonilla

Hon Hai Precision Industry, which trades under the name Foxconn Electronics, is reporting strong increases in their revenue for September, both since August and in the same period last year. It seems the driving force behind the growth is Apple’s iPhone 6s and iPhone 6s Plus smartphones.

Foxconn Electronics is a Taiwanese contract manufacturer and also happens to be the largest electronics-specific contractor. Even with its high status and success within its industry, the company has seen double-digit growth in revenue for last month. Foxconn’s income increased 57.35% from August and earned 10.95% more than by this time last year. The strong figures amount to $14.01 billion in consolidated revenue in one month. The contractor is no doubt benefitting from its deal with Apple to produce all orders for the larger iPhone 6s Plus, as well as a substantial amount of iPhone 6s. Apple’s latest devices are once again proving to be powerful competitors in the smartphone industry, with initial sales outpacing last year’s iPhone 6 and iPhone 6 Plus. Android OEMs like HTC and Sony are having difficulty finding a market for their own phones. HTC’s latest device seems to have shared a few design cues with Apple’s iPhones, as Apple did before, likely in the hope that a new look will draw new users.

Foxconn is reporting 9.6% growth for this quarter and 12.13% growth for the year. The period from January to September has also seen advances to the tune of 12.53%. Earlier reports indicate the manufacturer may be seeking to purchase Sharp’s LCD sector in a joint venture with Apple. Sharp is currently an unprofitable company and its LCD business could best improve their status by being sold. Given Foxconn’s position as one of Apple’s largest suppliers, the move would be set to prove advantageous for all companies involved. Apple would likely have a lowered cost per device manufactured if the deal went through, meaning higher profit margins for its iPhones.

Foxconn produces a variety of impressive products aside from smartphones, including Apple tablets, Kindles, and gaming consoles like Sony’s PlayStation 4. However, the company’s employees are rumored to work in terrible conditions, and the effects have been witnessed in several controversies from recent years. Suicide has become a common theme, and in 2012 150 employees were protesting the factory’s working condition through threats of a mass-suicide.