Foxconn, the manufacturer of Apple iPhones, recently announced a slight decrease in profits for the second quarter of the year. Despite this, the company managed to exceed expectations.
Foxconn, also known as Hon Hai Precision Industry (ticker: 2317.Taiwan), reported a 1% decline in profit compared to the same period last year. Additionally, revenue declined 14% and margins narrowed. However, the results still surpassed expectations, leading to a rise in the company's shares.
These results align with Apple's recent numbers, which showed a decrease in sales of iPhones and iPads. Foxconn believes that its consumer electronics division will perform better in the third quarter, although it may not reach last year's level.
As one of Apple's key suppliers, Foxconn's fortunes are closely tied to the tech giant. The company also manufactures Sony's PlayStation.
Traders expressed disappointment with Apple's recent results, which caused the company's market capitalization to fall below $3 trillion. Apple experienced a decline in sales for a third consecutive quarter, putting pressure on the upcoming launch of the iPhone 15 next month.
Regarding its own outlook, Foxconn remains cautious. The company stated, "In response to uncertainties such as global monetary tightening, geopolitical tensions, and inflation, the full-year outlook is now expected to slightly decline from previous expectations of stability."