Foxconn's quarterly figures are positive. Therefore, some observers now assume that Apple's Face-ID smartphone is not selling as badly as originally speculated.
Foxconn Quarterly Review Positive News?
In December Quarter, Hon Hai should have earned around two billion dollars in profit. In fact, it has grown to about two and a half billion.
The company is heavily dependent on Apple, since it is strong in trading with the iPhone maker. Estimates suggest that around half of Foxconn's revenue comes from Apple's stores. For this reason, observers see positive signals for the iPhone sales figures. Because Apple has probably ordered more devices in the December quarter, as previously thought.
However, if you look closer, you will find that the truth also heard that Hon Hai released a share package of Sharp shares. If the company had not sold the shares, the Christmas quarter would have been the worst since 2010. Accordingly careful one should be with the assessment.
iPhone X but a box-office hit?
Tim Cook himself has in the announcement of the quarterly figures of the company in February nevertheless stressed that the iPhone X is very good sold. In fact, it has been since the release on November 1, until then, every day the best-selling Apple smartphone. It is possible that in the end both are true and the sales of Foxconn in the timely release of the Face-ID device would have been much larger.
How the iPhone sales developed in the March quarter, we learn next month. Apple announces its next quarterly report on May 1.
Price Cut in Autumn?
Most recently, analyst Amit Daryanani of RBC Capital Markets expressed skepticism. Apple could celebrate only limited successes with the iPhone X. For this reason, he speculated, Apple would lower the starting price for the Face-ID device in the fall.