Hon Hai, the parent company of Foxconn (one of the major suppliers of Apple) has registered 47 billion US Dollars in earnings within the first quarter of 2021. This marks a year on year rise of 44 percent, which is apparently due to higher demand for the new iPhone 12 series.
According to an AppleInsider report, the high demand for the iPhone 12 lineup from home workers have boosted its earnings within Q1 of this year, with a rise of 44 percent compared to the same period last year. Reportedly, the primary reason for this rise is due to the popularity and high demand of Apple 5G enabled handsets and the growing working from home trend caused by the Coronavirus pandemic.
Notably, the significant rise of 44 percent arrives a year after the supplier reported a major decline of profit due to viral outbreak. Although, in the latest quarter, the company generated 47 billion US Dollars in earnings. Out of this sum 15.43 billion US Dollars were made from sales in March alone. The report further adds that teh sahred in Foxconn’s parent company, Hon Hai, have grown by 57 percent in just the last two quarters.
This rise is also due to the company’s plans for the electric vehicle industry. Additionally, Hon Hai has also warned of component shortages that could last until 2022. This could also affect its shipments by up to 10 percent. For those unaware, the world is suffering from a major shortage of semiconductors, and by its extension, chips, which has impacted various industries across the globe.
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