iPhone 5 a Boon to Foxconn Margins PDF Print E-mail
Written by Mike Buetow   
Wednesday, 14 November 2012 10:48

TAIPEI -- Hon Hai Precision Industry (Foxconn Electronics) reported gross margins rose during the September quarter, thanks in large part to higher payments from Apple.

The world's largest EMS/ODM reported gross margins of 9.54% for the quarter, its highest mark since the fourth quarter 2009. The operating margin rose to 3.43%, the best since the first quarter 2010. Foxconn gets a reported $8 per unit for assembling the iPhone 5, up from $6.50 per unit for the iPhone 4.

Foxconn had previously reported a large upswing in sales and net income for the period.

Apple, which rolled out the iPhone 5 during the period, saw gross margins slip to 40%, its lowest since the first quarter 2010, just ahead of the iPhone 4 rollout. It is typical for Apple's margins to fall during a product ramp, then rise as volumes and operating efficiencies improve.

 

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