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iPhone Maker Foxconn Reports Flat Profit Growth In Q3

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iPhone Maker Foxconn Reports Flat Profit Growth In Q3

Foxconn, formally known as Hon Hai Precision Industry Co., Ltd (OTC: HNHPF), reported a flat third-quarter profit.

What Happened: The Apple Inc (NASDAQ: APPL)-supplier raked in $1.08 billion (NTD 30.8 billion) in the quarter ended September, Reuters reported Thursday (Taipei Time).

The figure reportedly beat estimates by analysts which pegged profit at $1.02 billion (NTD 28.61 billion) on average.

In the same period last year, Foxconn had a profit of $1.07 billion (NTD 30.7 billion). The Taiwanese company did not supply a reason for its flat performance on profits, according to Reuters. In the second quarter, the company had posted a profit of $778.54 million.

Why It Matters: Foxconn had forecast thinner revenues from its smartphone business in Q3 but had said that the work-from-home trend benefited it, noted Reuters.

International Data Corporation (IDC) Research data indicates that 353.6 million smartphone shipments were made in Q3. In the same period in 2019, a total of 358.5 million smartphones were shipped, indicating a decline of 1.3% year over year.

In this period, Apple’s market share fell 11.8%, which IDC pinned on a month-long delay in the launch of its latest iPhone 12 model. 

iPhone sales fell short one billion compared with analyst estimates, however, the 5G model may act as a catalyst to boost sales in the December and March quarters.

Price Action: Hon Hai Precision OTC shares closed 1.09% higher at $5.72 on Wednesday.

 

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