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| Foxconn posts record quarterly profit on Apple boost | Foxconn posts record quarterly profit on Apple boost |
| (about 5 hours later) | |
| Hon Hai Precision Industry, a major assembler or Apple products, has posted record quarterly profits helped by growing demand for iPhones and iPads. | Hon Hai Precision Industry, a major assembler or Apple products, has posted record quarterly profits helped by growing demand for iPhones and iPads. |
| The Taiwanese firm, also known as Foxconn Technology, posted a net profit of NT$37bn ($1.2bn; £814m) in the October to December quarter. | The Taiwanese firm, also known as Foxconn Technology, posted a net profit of NT$37bn ($1.2bn; £814m) in the October to December quarter. |
| It also reported a 16% jump in full year profit for 2102 to NT$94.8bn. | It also reported a 16% jump in full year profit for 2102 to NT$94.8bn. |
| Foxconn is the world's biggest contract electronics maker and Apple is one of its biggest clients. | |
| According to some estimates, orders from Apple account for almost half of Foxconn's total revenue. | According to some estimates, orders from Apple account for almost half of Foxconn's total revenue. |
| In the October to December quarter, Apple had sold 47.8 million iPhones, up from 37 million a year earlier. | In the October to December quarter, Apple had sold 47.8 million iPhones, up from 37 million a year earlier. |
| Meanwhile, the launch of iPad mini, also boosted sales of its tablet PCs - it sold 22.9 million iPads, compared with 15.4 million in the same period in 2011. | Meanwhile, the launch of iPad mini, also boosted sales of its tablet PCs - it sold 22.9 million iPads, compared with 15.4 million in the same period in 2011. |
| Slowdown concerns | Slowdown concerns |
| However, the heavy reliance on Apple has also raised concerns that Foxconn's growth may slow in the coming months. | However, the heavy reliance on Apple has also raised concerns that Foxconn's growth may slow in the coming months. |
| Some analysts said that the rapid rate of growth that smartphones and tablet PCs have seen in recent years was likely to slow. | Some analysts said that the rapid rate of growth that smartphones and tablet PCs have seen in recent years was likely to slow. |
| "In most of the developed economies, smartphones are at a mature penetration stage and tablets are pretty close to being at that stage," said Andrew Milroy of consultancy firm Frost & Sullivan. | "In most of the developed economies, smartphones are at a mature penetration stage and tablets are pretty close to being at that stage," said Andrew Milroy of consultancy firm Frost & Sullivan. |
| Mr Milroy added that Apple had so far not been able to replicate the success it enjoyed in the developed economies in emerging markets. | Mr Milroy added that Apple had so far not been able to replicate the success it enjoyed in the developed economies in emerging markets. |
| He explained that in the emerging economies, Apple products were still very expensive and out of reach for many consumers. | He explained that in the emerging economies, Apple products were still very expensive and out of reach for many consumers. |
| At the same time, Apple is facing increased competition from other smartphone makers in those markets. | At the same time, Apple is facing increased competition from other smartphone makers in those markets. |
| "They are being hammered by low cost smartphones in countries such as China," he said. | "They are being hammered by low cost smartphones in countries such as China," he said. |
| The fear is that if Apple's growth rate slows, it will have a knock on effect on suppliers such as Foxconn. | The fear is that if Apple's growth rate slows, it will have a knock on effect on suppliers such as Foxconn. |