Foxconn Reports Strong Sales of Apple’s iPhone, But Cautious Outlook for Upcoming Quarter

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Apple Intrinsic Value ($NASDAQ:AAPL) – Foxconn ($TWSE:2354) reported a 12% rise in net profit and revenue for the June quarter on Wednesday, aided in part by strong sales of Apple’s iPhone.

However, the Taiwanese company gave a cautious outlook for the upcoming quarter, citing slowing smartphone demand. Foxconn, which manufactures Apple’s iPhones, said that rising inflation would only have a limited impact on mid and high-end smartphones, according to Reuters.

However, the company added that demand for some devices would decline after seeing “significant growth.””On the whole, we are slightly more cautious about the third quarter, but compared to the same period last year, we could still see growth,” Foxconn Chairman Chairman Liu Young-way said on a conference call following the results, according to Reuters. Regarding supply chain disruptions, Foxconn added that the second half of 2022 would be better than the first half if there were no other geopolitical issues. It is unclear how this will affect Apple’s market and earnings in the long term.

Market Reaction

However, the company cautioned that sales could slow in the current quarter due to the global economic environment.

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Summary

This news, coupled with the positive outlook for the upcoming quarter, caused the stock price of Apple to rise by 2.6%. Apple is a company with a long history of success, and its products are highly sought-after by consumers. The iPhone is one of the most popular smartphones on the market, and demand for the newest models is always high. The strong sales reported by Foxconn are a good sign for Apple, and investors are optimistic that the company will continue to perform well.