Foxconn Posts Record Revenues in November

Strong demand for Apple iPhones and iPads has helped Taiwan-based OEM Foxconn post record revenues of NT$300 billion ($10 bil.) in November.

Foxconn delivered 26 million iPhones in October and November. If it delivers 11 million iPhones in December, it will achieve its goal of shipping 37 million iPhones in the fourth quarter, said Citigroup chief analyst Kevin Chang.

IPad sales rebounded in November after a brief dip caused by the debut of Amazon’s Kindle Fire. For the 4th quarter Foxconn’s iPad orders rose to 13 million units from 11 million in Q3.

Foxconn’s fourth quarter iPhone output will surge 70% over the third quarter, Chang predicts. But iPhones are providing a relatively small share of Foxconn’s profits. Despite accounting for about 30% of Foxconn’s total consolidated revenue in the fourth quarter, they will contribute only 4% of the company’s annual operating profit margin.

Due to expected strong demand for iPads next February Foxconn is giving its iPad department only five days off for the Chinese Lunar New Year holidays while other departments will get nine days.

Foxconn’s strong results for November came as a surprise in light of prolonged flooding in Thailand that affected some components of Foxconn’s supply chain.