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Trouble With COGS Hits Foxconn’s Profit Machine

Tim Culpan
Trouble With COGS Hits Foxconn’s Profit Machine

Foxconn Technology Group turned in a stellar top-line performance last quarter. One major upside for Apple was that while iPhone shipments grew barely 1 percent, revenue climbed. The more expensive iPhone exacted a toll, however, as its costs climbed almost the same amount, resulting in a slight squeeze to Apple’s gross margin.