Taiwanese Foxconn Technology, a major supplier to Apple, posted a higher-than-expected profit in the past quarter. Due to the corona crisis, there is a high demand for smartphones, game consoles, servers, and other gadgets, which significantly improved the result. In addition, the company assembles iPhones on behalf of Apple.
Due to the much homework, education, and other measures to prevent the spread of the coronavirus, the demand for electronic devices and gadgets among consumers is still high. Companies are also spending more money on technology. They are expanding their IT infrastructure to serve customers better, especially as they are increasingly active online.
Foxconn closed the second quarter with a profit of 29.8 billion Taiwan dollars. That is converted to 912 million euros. On average, connoisseurs took into account a profit of almost 26 billion Taiwan dollars. Sales rose by a fifth to 1350 billion Taiwan dollars.
Incidentally, the worldwide parts crisis also affects the company. Like many other companies worldwide, Foxconn is also struggling with shortages of essential components such as chips. As a result, Foxconn expects consumer electronics sales to decline in the current quarter as a result.
Earlier, Apple warned of a shortage of parts that will hinder sales. To combat the problems with the chips, Foxconn has taken steps in that area. For example, chip company Macronix International was recently acquired. In addition, the company is setting up a chip factory together with partner Yageo.
Furthermore, Foxconn is also going to work more emphatically with electric driving. The company previously announced that it is working with partner Fisker on electric cars. For this, Foxconn wants to open a factory in Europe, among other things. In Thailand, the first car is to be delivered in 2023.