Foxconn’s parent company Hon Hai has beaten expectations with increased earnings in Q4 2020 due to ‘robust’ demand for Apple’s 5G iPhone 12 lineup.
Despite the fact that Foxconn – the sole assembler of both the iPhone 12 Pro and iPhone 12 Pro Max – had a rough start in 2020 due to the on-going global pandemic, but the iPhone assembler managed to surpass its expected revenue for Q4 and ended the year on a high note.
Foxconn beats revenue estimates due to strong demand for iPhone 12 – Report
At the beginning of the year Foxconn – like many other companies at the time – had to deal with a host of issues related to the COVID-19 global pandemic. But, the company’s revenue for the quarter beat expectations. According to Bloomberg, Foxconn’s fourth-quarter 2020 earnings reached NT$713.78 billion in December.
“Main iPhone assembler Hon Hai Precision Industry Co. reported higher-than-expected quarterly revenue thanks to robust demand for Apple Inc.’s new 5G devices.
The Taiwanese company’s sales in December totaled NT$713.8 billion ($25.5 billion). Revenue in the quarter reached a record NT$2 trillion, according to Bloomberg News’s calculations based on previously released monthly sales figures, beating the average estimate of NT$1.8 trillion.”
The report goes on to highlight that the “strong showing” could well mean that demand for Apple’s latest flagship iPhone lineup has surpassed the Cupertino tech giant’s expected levels. According to a ton of recent research and reports, the increased demand can be attributed to iPhone 12 being 5G-enabled.
For the whole of 2020, Hon Hai reports earning $194.4 billion. That means its Q4 earnings, which line up with the launch of iPhone 12, represent 37% of the annual total.
“Hon Hai is the exclusive assembler of the top-of-the-line iPhone 12 Pro and iPhone 12 Pro Max. Its sales for 2020 came in at NT$5.4 trillion, up slightly from NT$5.34 trillion in 2019 after Covid-era demand for connected gadgets offset a global economic downturn.”
According to the report, Hon Hai chairman Young Liu says sales will continue to grow by single digits throughout 2021, while the company’s automotive-related business will be “very good” in the first half.
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