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.