iPhone 8 hype made Foxconn the unlikely winner of the smartphone wars

It's no secret that the next iPhone will be a major shakeup for Apple's smartphone line – we've been consistently hearing rumors about its screen, fingerprint sensor, wireless charging, and so on. Following the relative unpopularity of the iPhone 7, consumers are waiting for something new from the company, which is seemingly eager to deliver. While this is a somewhat interesting story on its own, there's another angle to it that's been underreported – the iPhone 8 isn't just popular, but it's also a moneymaker, at least as far as Foxconn is concerned.

Foxconn, for those not in the know, is the main assembler of iPhones, meaning if you own one, chances are it's gone through one of their workers' hands. Also known as Hon Hai Precision Industry Co., the company has been building iPhones ever since the first one came out, and has grown substantially as a result. Its latest financials, however, show a staggering 29% year-over-year increase in share price, and most of it seems to be courtesy of iPhone 8 hype, according to a Bloomberg report.

But you'd be forgiven for not knowing the company is far from just an iPhone manufacturing facility – its clients list right now includes Huawei, Xiaomi, Sony, HP, and many more, and it's constantly growing bigger. The company is set to open a US display factory in the near future, along with another one in Shenzhen, China. It also recently acquired Sharp Corp., the struggling Japanese electronics maker, and tripled its value practically overnight. And really, most of it is thanks to the iPhone – Apple devices account for half the company's revenue, and following Apple's last quarterly earnings report, Foxconn's shares have skyrocketed.

In the immediate future, net income for the company could fall by as much as 13 percent, but estimates of the iPhone 8's success show that figure could easily rebound near its current value. In the long term, PC and mobile markets are slowing down, which could prove to be problematic for Foxconn, but recent investments in VR and artificial intelligence could prove to be successful new ventures for the manufacturer. Robotics are also an unexplored frontier, which the company appears interested in, following its stated desire to fully automate its factories.

source: Bloomberg

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1. trojan_horse

Posts: 5868; Member since: May 06, 2016

That what a win-win deal is all about. Foxconn's flying high now. Dealing with Apple in business happens to be so lucrative.

2. Bankz

Posts: 2550; Member since: Apr 08, 2016

Are these comments actually from u or am i dreaming? Lol

3. trojan_horse

Posts: 5868; Member since: May 06, 2016

I'm stating facts, @Bankz... as I've always done. Be it by bashing or by praising an OEM. Keep dreaming, you shall wake up one day!

4. Ninetysix

Posts: 2966; Member since: Oct 08, 2012

Remember all those comments about the Note 7? You kept on insisting that Samsung was sabotaged. Doesn't seem like a fact to me.

5. trojan_horse

Posts: 5868; Member since: May 06, 2016

I said quite the contrary, and insisted that the Note 7 fiasco would not bring down Samsung from it's position, nor would it stop Samsung users from sticking with Samsung's products. Are you deliberately twisting my words just to confront me?

6. mikehunta727 unregistered

Actually I do remember you saying something just like that too actually, you implied a few times in the past that this may have been some form of corporate sabotage or something(regarding Note 7). I remember you saying this in the past but too lazy to go and try and find it

7. trojan_horse

Posts: 5868; Member since: May 06, 2016

Yes, I said I think Samsung was being sabotaged, as the findings/report of the investigation wasn't yet released by then... no? So I decided to stick with my theory of Samsung being sabotaged by it's rivals, rather than to believe the half-assed articles and comments bashing Samsung's Quality Control... not to mention the numerous fake reports of Note 7 caching fire. It isn't that hard to grasp.

10. Ninetysix

Posts: 2966; Member since: Oct 08, 2012

Should have worn your tinfoil hat.

11. mikehunta727 unregistered

You and your mental gymnastics again... just admit it and move on. That's all.

13. Z.....

Posts: 355; Member since: Feb 01, 2017

Apple fanboy with a Android avatar....

16. mikehunta727 unregistered

Have owned over 10 Android devices over the course of nearly a decade, try again though you racist bigot clown troll. I am a all around technology lover and domt have a delusional bias to any brand like you, I can admit the good and the bad. Stop wasting your time and life though trolling on a phone news website, seriously, dont waste your life doing this

12. sgodsell

Posts: 7605; Member since: Mar 16, 2013

What kills me is Foxconn has been the largest smartphone, desktop, and tablet maker since 2015. So companies like Apple, Microsoft, Lenovo, Acer, HP, Sony, Xiaomi, Huawei, Alcatel, Blackberry, and the list keeps going. People should look them up, period. Plus they are also the largest manufacturer of IoT devices and SBC's in the world. The other thing to think about is Apple sold 215 million smartphones last year, which is down from the previous year. Yet a number of other OEMs have been seeing vast increases in smartphone market share. To the tune of 1.26 billion smartphones. With the vast majority of that 1.27 billion smartphones were Android. Just another article to sensationalize and pump up Apple sales, especially since they fell 3 quarters in a row last year. Not to mention they lost market share as well. But hey its always nice to see stories to pump up Apple all the time. Its not like we haven't seen enough of them, especially when the iPhone 8 isn't even out.

14. AlikMalix unregistered

Don't confuse annual reports with quarterly reports!

17. kiko007

Posts: 7521; Member since: Feb 17, 2016

Do you know what the average cost per Android device sold was? A grand total of $137 dollars per device. And people wonder why every OEM is struggling for scraps while Apple prospers, it's like they want to fail. In business: Never appeal to people who aren't going to pay! That should be common sense....guess not.

8. tedkord

Posts: 17481; Member since: Jun 17, 2009

Sometimes it's lucrative, sometimes not so much. Just ask GT.

9. trojan_horse

Posts: 5868; Member since: May 06, 2016

^^ That's what happens when you make a bad deal with Apple!

15. AlikMalix unregistered

That's what happens when you sell someone (Apple) on 100% ability but can barely deliver 25%.

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