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.



Eastern-US: China’s New Competitor?

Parity emerges among EMS Factories from Asia, Mexico and the US.

For the first time in years we see parity in the Eastern US among EMS factories from Asia, Mexico and the US. This EMS market condition will permit American OEMs (the EMS industry refers to OEMs as customers) to have more EMS pathways to choose from. Now more than ever, such EMS assignments will require deeper investigation relating to the OEMs’ evaluation of manufacturing strategies.

The Human Touch

For those who count on the electronics industry for big feats, it’s been a remarkable couple of years.



Advances in Concentration Monitoring and Closed-Loop Control

Contaminated bath water skews refractive index results. New technology can accurately measure aqueous cleaning agent concentration.

Circuits Disassembly: Materials Characterization and Failure Analysis

A systematic approach to nonconventional methods of encapsulant removal.





CB Login



English French German Italian Portuguese Russian Spanish


Panasonic Debuts PanaCIM Maintenance with Augmented Reality
PanaCIM Maintenance with Augmented Reality software provides instant communication and information to factory technicians -- when and where it is needed -- so they can respond to factory needs more...