Hon Hai posts profit on back of Apple's iPhone, iPad
Taiwanese electronics manufacturer sees profits rise for the third straight quarter to $673 million, beating analyst estimates.
Hon Hai Precision Industry, perhaps better known as Foxconn, posted a strong second-quarter profit as sales of Apple's mobile devices continued to benefit the Taiwanese electronics manufacturer.
Hon Hai on Wednesday posted net profit of T$20.19 billion ($673 million) for the second quarter, a nearly 19 percent increase from the T$16.98 billion it posted in the second quarter of 2013. Analysts polled by Reuters estimated a net profit of T$17.66 billion.
This tops the T$19.5 billion the company generated in the first quarter and marks its third consecutive quarterly profit.
Hon Hai has established itself as one of the most prominent technology suppliers in the world. While the manufacturer works with several device makers, Apple is its biggest customer. Some analysts estimate the iPhone maker accounts for up to 50 percent of Hon Hai's revenue.
Apple is expected to launch the anticipated iPhone 6 and new iPads this fall. While Apple has not announced the devices, Hon Hai -- one of Apple's largest suppliers -- would likely be involved in putting these products together.
Looking ahead, Hon Hai expects strong earnings as more companies, including Apple, place orders for production. Hon Hai has also invested in other areas, including IT services, in an attempt to diversify its operation. For now, however, its place in the supply chain is critical to its ongoing success.
CNET has contacted Hon Hai for more information on the earnings release. We will update this story when we have more information.
(Via Reuters)