Operating margins at Foxconnrose this year in a sign that the primary assembler of Apple’s iPhones and iPads has been able to offset some of the impact of rising wages in its major factories in China.
Net profits at Foxconn rose 24 per cent to T$57bn ($1.9bn) for the first nine months of the year and revenue rose 20 per cent to T$2.23tn as sales of the iPhone 5 began to take off, beating analysts’ expectations.
Its gross margins improved to 4.6 per cent from 3.7 per cent last year. Margin growth is key for assembly companies like Foxconn, which typically accept low margins that they then make up by producing a high volume of goods.
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