Foxconn is widely known as the manufacturing building where much of Apple’s iPhone and iPad devices are born. While the parts may come from a variety of suppliers, the final product is assembled at the Taiwan-based mega plant. Today, the Wall Street Journal reported that Hon Hai Precision, the parent company of Foxconn, saw a 13 percent increase in profit in 2013, bolster mainly by record iPhone and iPad sales.
According to the Wall Street Journal, Hon Hai earns more than 40 percent of its revenue from Apple. The company has relied heavily on Apple’s success and is said to be seeking other avenues for growth so it doesn’t suffer too much if Apple slows down.
The company reported a net profit of $3.5 billion from the same time last year. “Hon Hai’s results were underpinned by demand from Cupertino, Calif.-based Apple.” Apple reported record sales for the first quarter of 2014, which included the launch of the iPad Air, iPhone 5S and iPhone 5c. Apple sold 51 million iPhones, up seven percent from the same quarter a year ago. Additionally, Apple reported record sales of the iPad with 26 million units sold in Q1 2012, up from 22.9 the same quarter a year ago.
Foxconn is not the only company reporting profit increases. Pegatron, another manufacturing plant that Apple works with, reported a 22 percent increase in profits in its four quarter. For the first time Pegatron was the primary manufacturer of one of Apple’s model iPhones, the 5C.
In the face of such comments from financial analysts who claim Apple is on the downturn, it is interesting to see that companies around the world are seeing profits thanks to the iPad maker.