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Foxconn is known for assembling iPhones and is a key supplier to Apple.
AFP via Getty Images
Foxconn
,
which makes
Apple
iPhones, reported a decline in profits in the second quarter, but still managed to beat expectations.
Foxconn
(ticker: 2317.Taiwan), formally known as Hon Hai Precision Industry, said profit fell 1% in the three months through June from the same period a year earlier. Revenue declined 14% and margins narrowed, the company said. The shares still rose because the results exceeded expectations.
Foxconn
’s
results mirror those of
Apple
’s
(AAPL) most recent numbers, which showed a drop in iPhone and iPad sales. Foxconn said that performance at its consumer electronics division should improve in the third quarter, though it may still fall short of last year’s performance.
Apple shares inched up 0.5% to $178.70 in premarket trading Monday. Foxconn shares are up 10% this year.
Foxconn’s fortunes are closely tied to Apple’s as one of the tech giant’s most important suppliers. It also makes
Sony
‘s (SONY) PlayStation.
Traders were disappointed with the results Apple reported earlier this month, pulling the company’s market capitalization below $3 trillion. Sales declined for a third quarter for the first time since 2016 and revenue fell. That puts a lot of pressure on Apple delivering with the launch of the iPhone 15 next month.
For its part, Foxconn said it’s cautious about its own outlook. “In response to uncertainties such as global monetary tightening, geopolitical tensions, and inflation, the full-year outlook is now expected to slightly decline, from previous flattish expectations,” it said in a statement.
Write to Brian Swint at [email protected]
Source: https://www.barrons.com/articles/foxconn-apple-stock-iphone-prices-86c5a1b9?siteid=yhoof2&yptr=yahoo