Hon Hai Swims In Money With Record ProfitsHave you heard of Hon Hai Precision Industry Co. before? Sure you have, you can more or less say that thanks to the wonder that is called the Apple iPhone, the company has managed to turn over a handsome profit this quarter – in a record figure, to boot, being the world’s largest contract manufacturer of electronics while they are at it. Fourth-quarter net income actually managed to increase by another 5.6% to $1.2 billion, which is more than what 14 analyst estimated prior.

In order to break their previous record, Hon Hai managed to solve production issues that affected output of the iPhone 5 in the previous quarter, which certainly helped the company raise revenue and margins along the way. As for the Taipei-listed flagship of Terry Gou’s Foxconn Technology Group, who is also their rival in one way, Foxconn could very well face a drop in sales and profit this quarter, no thanks to the possible wane in iPhone demand with Samsung’s aggressive marketing of their smartphones. We do wonder, however, where would Hon Hai be in the large scheme of things if Apple was not around as one of their major customers.

This article was filed in Homepage > Cellphones. The story was spotted on bloomberg
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