Despite falling demand for smartphones and a disastrous first quarter, Foxconn profits soar

Apple’s largest manufacturing partner, Foxconn, today posted profits for the second quarter of this year. It is reported that the result exceeded all expectations, which were previously underestimated due to the fall in demand for smartphones and the crisis caused by the coronavirus pandemic.

The company reported net income of $ 778.54 million for the second quarter of 2020, nearly $ 5 million more than analysts predicted and 34% higher than last year’s figure for the same period. The results show a significant improvement in the position of the Taiwanese company after almost 90% decline in profit in the first quarter. The additional revenue was reportedly generated by server manufacturing, while revenue from consumer products such as smartphones was down 15%.

Foxconn cut its 2020 revenue projections after strict quarantine measures were imposed at its factories in China in February. Now the worst is over, and Foxconn is hiring additional workers to meet the demand for the iPhone 12 series smartphones, which will be released this fall. According to analysts’ forecasts, it is Foxconn that will collect more than 70% of new Apple smartphones.

Recall that this year the Californian tech giant is announcing four models of branded smartphones, one of which will receive a 5.4-inch screen, two will be equipped with 6.1-inch displays, and the older model of the family will be able to boast of a 6.7-inch matrix.

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