Foxconn Profit Rises 41% on Strong iPhone Sales, Low-Cost iPhone to Drive Similar Gains at Pegatron

Hon Hai Precision Industry Co., Apple's primary iPhone and iPad assembler, has experienced a 41% jump in second quarter net profit thanks to strong iPhone sales, reports The Wall Street Journal.

The company, better known as Foxconn, saw a net profit of NT$16.98 billion, which is approximately US$566.7 million. During the second quarter of 2012, Foxconn's net profit was just NT$12.06 billion. Foxconn reportedly earns more than 40% of its revenue from Apple.

foxconn_workers_2
Foxconn's high profit numbers mirror Apple's own record breaking Q2 iPhone sales of 31.2 million units, first announced during the company's third quarter earnings call. Foxconn could see even greater profits in the coming quarters as Apple gears up to release its next generation iPhone, along with additional products like the fifth generation iPad and the Retina iPad mini in the fall months.

Apple is also expected to unveil a new iPhone this fall, which would help pad Hon Hai's earnings in the second half of the year, typically a strong selling season for technology companies due to the back-to-school and holiday shopping seasons.

The products Apple has in the works will also have a huge impact on Pegatron, the company assembling Apple's low-cost "iPhone 5C". According to analyst estimates, the new phone could contribute as much as 40% to Pegatron's third quarter revenue. At a recent investor conference, Pegatron estimated that its sales would grow 40%–50% in Q3 2013.

Both Pegatron and Foxconn have been reported to be hiring a number of new employees as production ramps up on the upcoming devices.

Apple's next generation iPhone 5S is expected to be released during a September 10 event, but it remains unclear if the event will also include the iPhone 5C. Apple is also expected to hold a second event in the last three months of the year to debut new iPads.

Popular Stories

iOS 26

iOS 26.1 Coming Soon: New Features for Your iPhone and Release Date

Monday October 27, 2025 7:55 am PDT by
The upcoming iOS 26.1 update includes a handful of new features and changes for iPhones, including a toggle for changing the appearance of the Liquid Glass design, "slide to stop" for alarms in the Clock app, and more. Below, we outline key details about iOS 26.1. Release Date Given that Apple has yet to seed an iOS 26.1 Release Candidate, which is typically the final beta version, the...
maxresdefault

Apple TV 4K Could Still Launch Before 2025 Ends: All the Rumored Features

Monday October 27, 2025 4:51 pm PDT by
Apple is designing an updated version of the Apple TV 4K, and rumors suggest that it could come out sometime in the next couple of months. We're not expecting a major overhaul with design changes, but even a simple chip upgrade will bring major improvements to Apple's set-top box. Subscribe to the MacRumors YouTube channel for more videos. We've rounded up all the latest Apple TV rumors. ...
iOS 26

6 New Things Your iPhone Can Do in iOS 26.1

Wednesday October 29, 2025 4:22 am PDT by
Apple is about to drop iOS 26.1, the first major point release since iOS 26 was rolled out in September, and there are at least six notable changes and improvements to look forward to. We've rounded them up below. Apple has already provided developers and public beta testers with the release candidate version of iOS 26.1, which means Apple will likely roll out the update to all compatible...
M6 MacBook Pro Feature 1

M6 MacBook Pro: Release Date, Pricing, and What to Expect

Monday October 27, 2025 9:15 am PDT by
Apple this month refreshed the 14-inch MacBook Pro base model with its new M5 chip, and higher-end 14-inch and 16-inch MacBook Pro models with M5 Pro and M5 Max chips are expected to follow in early 2026. However, these machines will represent the final update to the current design, with Apple reportedly developing a completely new version of the MacBook Pro packed with next-generation hardware...
iOS 26

Apple Seeds iOS 26.1, iPadOS 26.1, and macOS Tahoe 26.1 Release Candidates

Tuesday October 28, 2025 1:07 pm PDT by
Apple today provided developers and public beta testers with the release candidate versions of upcoming iOS 26.1, iPadOS 26.1, macOS Tahoe 26.1, tvOS 26.1, watchOS 26.1, and visionOS 26.1 updates for testing purposes. The RCs betas come a week after Apple released the fourth betas. The new betas can be downloaded from the Settings app on a compatible device by going to General > Software...
iOS 26 Battery Glass Feature

iOS 26.1 Beta Liquid Glass Battery Drain Test: Tinted vs Clear Mode

Friday October 24, 2025 2:30 pm PDT by
In the fourth iOS 26.1 beta, Apple added a "Tinted" option that reduces the translucency of Liquid Glass for those who prefer a more opaque look. I saw some comments wondering whether the setting might preserve battery life, so I thought I'd do some testing. Test Settings I did four separate tests using the iPhone 17 Pro Max, and I kept the parameters as similar as possible. Here are the...
ios 26 digital id passport wallet

Apple Says U.S. Passport Feature on iPhone is Coming Soon

Monday October 27, 2025 7:41 am PDT by
You will "soon" be able to add a digital version of your U.S. passport to your iPhone, according to Jennifer Bailey, vice president of Apple Pay and Apple Wallet. Bailey reiterated that the feature is coming soon during her keynote at the Money20/20 USA conference in Las Vegas on Sunday. On its iOS 26 page, Apple says the delayed feature will be "coming later this year." Apple's...
All Screen iPhone 2027 Feature 1

iPhone XX? 6 Features Rumored for Apple's 20th Anniversary iPhone

Monday October 27, 2025 4:01 pm PDT by
For the 10th anniversary iPhone that came out in 2017, Apple introduced the iPhone X with Face ID, notch, and minimized bezels, providing more display space than ever before. The 20th iPhone anniversary is approaching and Apple wants to take the iPhone X design even further. We're two years away from the 2027 iPhone, but it's tough for Apple to keep major changes under wraps. We've rounded...
macos tahoe

Here Are Apple's Release Notes for macOS Tahoe 26.1

Tuesday October 28, 2025 1:21 pm PDT by
Apple today provided developers and public beta testers with the release candidate version of macOS Tahoe 26.1, which means the update will likely see a public launch next week. The release candidate includes notes on what's in the update, so we have a full picture of the new features that Apple has included. macOS Tahoe 26.1 adds AutoMix support over AirPlay, improved FaceTime audio...

Top Rated Comments

Ryth Avatar
159 months ago
All this profit and companies can't seem to pay their employees more :confused:

Nothing is stopping you from making your own company and paying employees what you want.
Score: 6 Votes (Like | Disagree)
FrizzleFryBen Avatar
159 months ago
Can we have a new Foxconn stock photo? Seems like the same three over and over.
Score: 6 Votes (Like | Disagree)
absurdamerica Avatar
159 months ago
And yet according to every half whit analyst and for this and that Apple is going fail. Contradictions are driving me nuts.

Fail to see how they will fail any more than any othe big company. Of course they are loosing market share but that's what happens when dozens of cheap competitors join the Frey and some of the practically and literally give away stock and claim it as legitimate sales.

It's easy to undercut a market. Much harder to produce high quality product. My experienced with a couple of the different Android mush mash was appalling. I can't see what anyone sees in them. SERIOUSLY IT'S RUBBISH! Stop buying the sheet, your bringing all humanity down a notch. Bloody moans atolls...

I'm going to try to explain this to you in hopes that you actually come away with some idea of what's going on because you don't have a clue what you're talking about.

No analysts are saying Apple is likely to "fail" or go out of business. They are suggesting that Apple's growth is slowing (which it is) and that going forward it will make much smaller gains than it had been previously. This is somewhat expected to happen as any market matures and solidifies. All the market really gets excited about is future growth and investors are who the analysts are writing for, not Apple or Samsung fanboys on the Internet.

Remember how IBM used to be the name in computing? You probably don't because it was in the 1960's. Did IBM go away? No. Are they the name in computing anymore? No. Apple risks going in a similar direction.

Please show me where manufacturers are "giving away stock". Sure, Android manufacturers are making smaller margins, but the idea that some manufacturers are giving away or even eating a loss just to make Google look better to fanboys on the Internet is absurd.
Score: 5 Votes (Like | Disagree)
Ventilatedbrain Avatar
159 months ago
Surprised. Didn't think Apple was doing this well. Maybe Foxconn had mistaken Apple for Samsung ;)

Correct me if I'm wrong ... Wasn't Samsung kicked out of foxconn because they stole a lot of ideas from other companies ??
Score: 5 Votes (Like | Disagree)
Glideslope Avatar
159 months ago
Correct me if I'm wrong ... Wasn't Samsung kicked out of foxconn because they stole a lot of ideas from other companies ??

Correct, and they continue to steal. Daily. ;)
Score: 3 Votes (Like | Disagree)
WiiDSmoker Avatar
159 months ago
All this profit and companies can't seem to pay their employees more :confused:
Score: 3 Votes (Like | Disagree)