Apple brand channels hefty profits to iThing maker Foxconn

Foxconn Technology, manufacturing buddy of Apple, received a nice boost to its profits courtesy of the continued popularity of iDevices. The mega electronic components manufacturer, also known as Hon Hai Precision, reckons its improved productivity and better device lineup gave its earnings a lift as well as bringing some …

[Turtle_Fan]

Hefty Profits!!!???

In what sector is a margin of 1.3% equal to "hefty profits"?

Those results are pitiful for such a large company. But then again, given the tax planning etc. those profits may or may not be an accurate representation of the reality.

The EMS sector's typical margins are in the low singles (4%-7%) but 1% is woefull.

[David Dawson]

Re: Hefty Profits!!!???

I get 2.59% profit.

based on

"Foxconn has bagged NT$57.8bn ($1.98bn; £1.23bn) in net profit for the first nine months of the year and revenue of NT$2.23trn ($76.3bn, £47.4bn), up 21 per cent from last year."

$1.98bn for 9 months, over $76.3bn. Which is 2.59% profit.

Still not awesome margins, but I'd be happy with an extra billion in the bank to spend on beans.

[Turtle_Fan]

Re: Hefty Profits!!!???

I sit corrected.

I actually got the quarterly figure and used it over the three-quarters figures.

So you're right. Ma bad.

[JaitcH]

And this company is the very one ...

who is shafting the employee who lost half his brain in an accident?

A pox on all their houses. Bastards.

[Anonymous Coward]

Hang on a minute

Are apple's fortunes looking better, or worse? I'm getting confused (easy for me at my age) with all these seemingly contradictory reports.

Also, Foxconn's investment in Sharp? Are they earning so much money that they could eventually start eating the other firms until they are at a point where they could potentially become a much more painful adversary to Apple that Samsung could ever be?

[Donald Becker]

Don't compare those profit numbers to other countries.

Those profit numbers are not the same as U.S. GAAP net revenue.

Think of them as roughly comparable to 'Hollywood Accounting' or old-style casino books. The books are re-worked so that only a trivial profit is shown. Cars, vacations and houses for executives are company expenses.