iPhone 13’s success propelled Foxconn earnings in Q3, 2021

Apple’s iPhone assembling partner, Hon Hai Precision Industry Co. (also known as Foxconn) reported higher than expected earnings for the third quarter of 2021. The record sales revenue was boosted by strong demand for Apple’s latest flagship iPhone 13 series.

Analysts estimated NT$32.4 billion revenue, but the iPhone assembler said its net income for the third-quarter ending in September 2021 was NT$37 billion ($1.3 billion). “Sales for the period reached a record NT$1.4 trillion based on previously reported numbers.”

Despite chip shortage, Foxconn reported record sales in Q3 2021 because of strong iPhone 13 series demand

At the Q4 2021 earnings call, Apple CEO Tim Cook said that consumers’ response to the latest flagship iPhone 13 series is promising.

We are optimistic about the future, especially as we see strong demand for our new products. At the end of the September quarter, we introduced our iPhone 13 lineup as well as the Apple Watch Series 7, iPad and iPad mini, all of which represent significant advances. The iPhone 13 and iPhone 13 mini, alongside the iPhone 13 Pro and Pro Max, are setting a new standard with their superfast performance, advanced camera systems, longer battery life and brilliant Super Retina displays.

The report also accredits Foxconn’s success to the latest flagship series.

Hon Hai’s sales growth “indicates stronger-than-expected demand for its semiconductors, mainly power and analog chips, and iPhone assembly service,” Bloomberg Intelligence analyst Charles Shum said in a Oct. 20 note.

As predicted before the launch of the latest series, iPhone 13 demand is high in major markets like U.S. Europe, and China. Recently, it was reported that Chinese e-commerce giant, JD.com sold more than $15 million worth of iPhones in just 2 seconds on the Singles Day sales event.