JuneQuarter
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Robust iPhone sales bolster Foxconn bottom line
Apple's controversial, but improved, manufacturing partner Foxconn had a strong second quarter thanks to iPhone sales surpassing expectations for the period. Net profits were up 41 percent over the June quarter in 2012. According the Wall Street Journal, Apple accounts for 40 percent of the revenue for the company, also known as the Hon Hai Precision Industry Co. June's numbers were helped by Apple's own strong quarterly numbers, in which the company shipped a record 31.2 million iPhones. The WSJ report however paints a bleaker picture of the company's fortunes. Shares of Hon Hai have fallen about 12 percent since the beginning of 2013 in much the same way that Apple's share price has fluctuated. These fluctuations are due largely to how sales of Apple products often decrease as hardware gets older. Sales are brisk right after a product launch, but as time passes, more buyers consider holding out on buying a product until a new model is released. Apple has seen sales bumps throughout the year as the iPhone 5 has become available on new carriers for the first time. With the impending release of Apple's new fall line of products, including what is expected to be a new iPhone, Foxconn/Hon Hai profits should continue to grow for some time.
Sprint iPhone sales hold steady, AT&T and Verizon decline
Sprint has announced that it sold 1.5 million iPhones in the last quarter. That means the company is holding fairly steady for iPhone sales, having sold about the same number in the previous quarter. 40 percent of last quarter's sales were to new Sprint subscribers, so the iPhone is bringing in new money to the company. Verizon and AT&T weren't quite so lucky -- Verizon saw sales of its iPhone drop from 3.2 million to 2.7 million, and AT&T saw a drop from 5.5 million to 3.7 million. When you consider those numbers, Sprint is doing quite well indeed. But there are probably a few different reasons for those drops, none of which seem very threatening for any of these companies. Yes, Android is growing in popularity all the time, and yes, more and more carriers are picking up iPhone contracts, which means there are more pieces of the pie to go around. And the biggest cloud over all of these figures is of course the possible new iPhone coming later on this year. If Apple does debut a new device along with iOS 6, these numbers may jump right back up the charts.
