|Bid||91.00 x 0|
|Ask||91.10 x 0|
|Day's Range||91.00 - 92.20|
|52 Week Range||67.00 - 97.20|
|Beta (3Y Monthly)||0.57|
|PE Ratio (TTM)||9.81|
|Earnings Date||Nov 13, 2019|
|Forward Dividend & Yield||4.00 (4.38%)|
|1y Target Est||88.95|
Foxconn - and Apple: the two names go hand in hand. The first is a massive supplier of iPhones and other devices to the second And now says it's got better-than-expected numbers for Q3. Profits came in at just on one billion dollars for the firm - also known as Hon Hai ... That's a 23% rise Thanks, it says, to better margins at subsidiaries like handset-maker FIH Mobile. Its performance in consumer electronics and smart devices will pick up slightly next year, it says ... On an improving global outlook. Amid the fallout from the U.S./China trade war, it's a second dose of good news, after Apple itself's recent upbeat forecast for the crucial holiday shopping period. Another supplier wasn't so lucky. Japan Display - maker of LCDs - which, like Foxconn, gets a huge share of its revenues from Apple ... Reported an 11th consecutive quarterly net loss. Partly down to restructuring costs - as it seeks to clinch a bailout deal with Apple and other investors.
Apple is denying a report that alleges that it, along with manufacturing partner Foxconn, violated Chinese labor laws. Yahoo Finance's Adam Shapiro, Julie Hyman, Andy Serwer, and Brian Sozzi discuss.
Terry Gou, the billionaire founder of Apple supplier Foxconn, said on Tuesday he would discuss investment and the China-U.S. trade war while in the United States, adding that he may get to meet U.S. President Donald Trump again. Gou, Taiwan's richest person with a net worth of $7.6 billion according to Forbes, stepped down as chief of Foxconn this year, handing over the running of the company to an operations committee. Gou, who is attending the White House Christmas party as part of his 10-day trip, met Trump in Washington in May to discuss the Taiwanese company's planned investment in Wisconsin.
Economist Timothy Bartik explains why the public costs of tax incentives often outweigh the benefits, and describes a model business-incentive package.
(Bloomberg) -- Apple Inc. received a rare bear call on Thursday, after the company was downgraded to sell from hold at Maxim Group, which cited the potential for lower iPhone revenue over the next year.Analyst Nehal Chokshi forecast weakness in both unit sales and average selling prices, citing an analysis of a proprietary survey.The survey data “lead us to expect 14% below consensus iPhone revenue in F2Q20 & 6% below for FY20,” the firm wrote to clients. It expects iPhone revenue will fall 5% in Apple’s fiscal 2020, and also anticipates that Apple’s operating profits will fall 2% year-over-year “as ongoing growth in services and wearables will only partially offset iPhone declines.”Maxim established a $190 price target on the stock, which implies downside of nearly 30% from Apple’s Wednesday record close of $264.47. Shares of Apple have climbed more than 50% from a June low and were little changed on Thursday.Sell ratings on Apple are somewhat rare, although the ranks of bears has been growing this year. According to data compiled by Bloomberg, Maxim is the sixth firm to recommend selling the stock, compared with the 27 firms with a buy rating and the 15 with a hold-equivalent view. The average price target on Apple shares is $255, or nearly 4% below current levels.The cautious view about the iPhone is also something of an anomaly on Wall Street. Earlier this week, Hon Hai Precision Industry Co. -- the assembler for most iPhones and iPads -- reported earnings that beat expectations, in what was seen as a proxy for solid iPhone 11 demand. Apple’s recent results also pointed to strong demand, and there is a good deal of optimism for 2020, when the Cupertino, California-based company is expected to release a 5G version of the product. Last week, BofA wrote that Apple shares still had “significant room for upside,” given the potential of the next product cycle.According to a Bloomberg MODL estimate, Apple is expected to ship 190.1 million iPhones over its 2020 fiscal year, with an average selling price of $750.71. In 2019, nearly 55% of Apple’s total revenue was derived from the iPhone, per data compiled by Bloomberg.(Updates stock to maket open in fourth paragraph)To contact the reporter on this story: Ryan Vlastelica in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Catherine Larkin at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Hon Hai Precision Industry Co. reported quarterly profit above analysts’ estimates, indicating solid demand for Apple Inc.’s iPhone 11 range.The assembler of most of the world’s iPhones and iPads posted net income of NT$30.7 billion ($1 billion) for the September quarter, compared with an average estimate of NT$27.7 billion.Apple last month forecast holiday revenue that surpassed Wall Street’s projections, suggesting healthy appetite for iPhone 11 models with lower entry prices and vastly improved cameras. It’s now said to expect iPhone shipments to return to growth in 2020 when it finally introduces its own 5G devices -- a boon to hardware suppliers such as Hon Hai and chipmaker Taiwan Semiconductor Manufacturing Co. coping with a decelerating smartphone market. Assembly partners like Hon Hai and TSMC typically begin gearing up for production weeks, if not months, ahead of a device’s commercial launch.The outlook for Apple and its main suppliers remains overshadowed by an ongoing trade war. AirPods, Apple Watch, HomePod and other devices made in China have been hit with 15% tariffs, and U.S. President Donald Trump hasn’t ruled out the possibility of a levy on iPhones starting Dec. 15. Hon Hai said it’s getting into the production of wearable gear next year, potentially competing for more Apple business but also increasing its exposure to the trade war.Hon Hai, which gets half its revenue from its Cupertino, California partner, is now diversifying away from its main Chinese production base to mitigate the impact of potential punitive tariffs. It’s spending more than NT$17 billion building factories in India and Vietnam, responding to customers’ needs, Chief Financial Officer David Huang said at an earnings conference. Those two countries will become regional manufacturing hubs, he added.Read more: Apple Expects IPhone Shipments to Return to Growth in 2020Hon Hai’s investment encapsulates a fundamental trend that’s beginning to shake up production of most of the world’s electronics. Taiwanese companies like Hon Hai, which today make most of the most recognizable brands, began investing in China decades ago, kicking off a transformation that’s made China the world’s factory floor. But faced with growing trade tensions and U.S. tariffs, the leaders of those companies -- which typically operate on wafer-thin margins -- are reconsidering their commitment to China.Read more: The Tycoons Behind China’s Gadget Factories Boom Prepare to ExitAlthough any pivot away from the country is just starting, factories that leave won’t come back anytime soon. In Hon Hai’s case, billionaire founder Terry Gou has even promised to shift jobs and production into the American heartland. Gou has said he intends to press ahead with construction of a display panel factory in the state of Wisconsin, an endeavor once tagged as a $10 billion investment but that has fallen far behind schedule. Vice Chairman Jay Lee said that project was “‘on track.” Hon Hai has completed initial construction on the first, main factory and the company will also target the defense and aviation markets with its panels, he added.Hon Hai executives also forecast a rebound in consumer electronics demand in 2020, which could help prop up its top line. The company reported NT$1.39 trillion in sales for the September quarter, barely changed from a year earlier. Chairman Young Liu said the firm’s goal is to achieve 10% gross margins within three to five years. Its shares closed down 1.4% ahead of the earnings on Wednesday, after gaining 27% this year.“The lower pricing of the iPhone 11 has been effective in driving demand past the Street’s expectations,” Sean Lin, an analyst at President Capital Management Corp., said in a Nov. 4 note.(Updates with executives’ comments from the fifth paragraph)To contact the reporter on this story: Debby Wu in Taipei at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Taiwan's Foxconn, a key supplier to Apple Inc, posted a better-than-expected 23% rise in quarterly profit on Wednesday and forecast slight growth in its core business next year. The latest solid showing from the world's largest contract electronics manufacturer should ease investor concerns over weak global demand, as it comes on the heels of Apple's positive earnings forecast for the year-end holiday quarter. Foxconn Chairman Liu Young-way told an investor conference after the quarterly results that he expects slight yearly growth in 2020 in its consumer electronics and smart devices business, which includes smartphones and TVs, thanks to "a stabilizing global economic situation." He did not elaborate.
Taiwan's Foxconn, a key supplier to Apple Inc, posted a better-than-expected 23% rise in quarterly profit on Wednesday and forecast slight growth in its core business next year. The latest solid showing from the world's largest contract electronics manufacturer should ease investor concerns over weak global demand, as it comes on the heels of Apple's positive earnings forecast for the year-end holiday quarter.
Foxconn, the world's biggest electronics manufacturer and Apple Inc.'s AAPL biggest supplier, posted stronger-than-expected third quarter earnings Tuesday as smartphone and mobile sales jumped amid renewed global demand ahead of 5G network rollouts.
While U.S. and Chinese firms are trying to fully disengage with each other, many are trying to guarantee that they have options should economic tensions worsen.
In an interview with Reuters, HCM founder and managing partner Jack Lee said he could not yet specify the size of the new fund that it plans to raise, but said it could be a "hundred million more or up to several hundred" million more than HCM's previous fund which invested in a number of blockchain and other tech startups. Foxconn Technology, a unit of the world's largest contract electronics manufacturer Hon Hai Precision Industry , is one of the investors in giant Japanese firm SoftBank's $100-billion Vision Fund.
Wisconsin's Racine County next week will lock in $110 million, 20-year financing for a major development by Taiwan's Foxconn Technology Group that has undergone changes in scope since it was announced in 2017, the county and a bank underwriting the bonds said. The planned $10 billion, 20-million-square-foot campus in the southeastern Wisconsin county had been hailed by the White House as the largest investment for a brand new location by a foreign-based company in U.S. history and proof that President Donald Trump was reviving American manufacturing. Foxconn initially sought to manufacture advanced large-screen displays for TVs and other consumer and professional products at the Wisconsin site.
Sales at Hon Hai Precision Industry, known by its trade name Foxconn and as a key supplier of Apple Inc's products, rose by 0.5% rise in September. The world's largest contract electronics manufacturer reported revenues of T$587.79 billion ($19 billion) in September, up from T$584.93 billion from a year earlier, it said in a filing to the Taiwan stock exchange. Taipei-based Foxconn, which manufactures the bulk of Apple's iPhones in China for sale in the United States, faces challenging quarters ahead as Washington plans to impose additional tariffs on Chinese imports, including smartphones.
(Bloomberg) -- Terry Gou, the billionaire founder of Foxconn Technology Group, pulled out of next year’s presidential election in Taiwan, a move that may help unite the opposition Kuomintang party.Gou apologized to his supporters in a statement on Facebook Tuesday outlining his decision to withdraw from the race as an independent. After he quit the KMT last week, he had come under pressure from opposition leaders, including former President Ma Ying-jeou, to drop out of the race and support their nominee to help return the China-friendly party to power.“With this poor election climate and prevailing populism, I’m not willing to participate in this political farce, not only for my own personal and factional interests, but also because class struggle is tearing Taiwan apart,” Gou said in a video released Tuesday.Gou could still run as a candidate for one of Taiwan’s established political parties.Shares in companies controlled by Gou slumped Tuesday. FIH Mobile Ltd. was the worst performer on Hong Kong’s Hang Seng Composite Index, tumbling as much as 23.2%. His flagship Hon Hai Precision Industry Co. fell 2% in Taipei.Gou had been widely expected to run for the presidency after publicly flirting with the idea since losing the KMT primary to Kaohsiung Mayor Han Kuo-yu in July. Gou’s candidacy threatened to sap support for Han who will challenge President Tsai Ing-wen in the Jan. 11 election.Gou trailed the two candidates from the main parties by at least seven percentage points, according to a survey released by TVBS last week. In a two-way race, Tsai leads with 49% of support, compared with 42% for Han.What had been shaping up as Taiwan’s most competitive presidential election in decades could end up being essentially a straight fight between Tsai and Han. Another prospective independent candidate, Taipei City Mayor Ko Wen-je, said he had no intention of running for president, according to a report by TV news channel TVBS on Tuesday. Still, Tsai could face increased competition for voters who favor a stronger push for the island’s formal independence. Former Vice President Annette Lu announced her intention to run as an independent. Lu served as vice president under Chen Shui-bian between 2000 and 2008.(An earlier version of this story was corrected to fix spelling of Hon Hai Precision Industry Co. in fifth paragraph)\--With assistance from Tony Jordan.To contact the reporter on this story: Debby Wu in Taipei at firstname.lastname@example.orgTo contact the editors responsible for this story: Daniel Ten Kate at email@example.com, Samson Ellis, Karen LeighFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Terry Gou, the billionaire founder of iPhone assembler Foxconn Technology Group, threatened to throw Taiwan’s presidential race into turmoil as he took a key step toward running as an independent.Gou withdrew Thursday from the opposition Kuomintang, a necessary precursor to mounting a third-party challenge against President Tsai Ing-wen. The move came despite a last-minute plea from senior KMT leaders including Tsai’s predecessor, Ma Ying-jeou, for Gou to back their nominee and help return the China-friendly party to power. Gou has until Tuesday to apply to run in the Jan. 11 election.“I know I’m doing the right thing, something major that will turn around Taiwan’s destiny,” Gou said in a statement. Gou’s candidacy would shake-up Taiwan’s political landscape, undercut KMT challenger Han Kuo-yu’s effort to unseat Tsai and potentially weaken both dominant parties. A three-way race could be a hard-fought affair, with Tsai leading with 33.7% of support, compared with 28.9% for Han and 25.6% for Gou, according to a survey released Tuesday by the Apple Daily newspaper.Since both Gou and Han support closer ties with China -- always Taiwan’s most contentious wedge issue -- the Foxconn founder could complicate the KMT’s bid to oust Tsai and her pro-independence Democratic Progressive Party. Tsai has been dogged by an increasingly assertive Beijing, which has been angered by her refusal to accept the Communist Party’s bottom line that both sides belong to “one China.”“The KMT will be substantially impacted by Gou’s declaration to run,” said Stephen Tan, president of the Taipei-based Cross-Strait Policy Association. “Although Gou will run as an independent, his constituents have been mainly the ‘blue’ voters and the moderates whom KMT is working hard to seek for support.”Taiwan’s Tsai Rises From Ashes With a Hand From Hong KongGou has continued to publicly flirt with the idea of a presidential bid despite losing the KMT primary to Han in July. The firebrand Kaohsiung mayor has become one the island’s best-known -- and most divisive -- political leaders since his surprise win in the DPP’s southern stronghold in November.Han said he regretted Gou’s move to withdraw from the KMT. Ma, the former president, and KMT Chairman Wu Den-yih were among several senior opposition figures who published advertisements in newspapers earlier Thursday urging Gou to support their nominee.Gou built Foxconn from a maker of television knobs into a global powerhouse that is now Apple’s biggest supplier and China’s largest private employer. He also has ties to President Donald Trump, meeting the U.S. leader at the White House in May, weeks before stepping down as chairman of Hon Hai Precision Industry Co., Foxconn’s main listed arm.Shares in companies Gou controls rose after he quit the party Thursday, with FIH Mobile Ltd. surging more than 15% in Hong Kong and the group flagship Hon Hai rising 2% in Taipei.Hong Kong Immigration to Taiwan Surges as Protests Grind OnGou has been sending signals that he might mount an independent run for weeks, although he’ll still need to collect around 280,000 signatures to get on the ballot. After assembling a campaign team, he confirmed last month that he was considering breaking from the KMT for a stand-alone bid.“This conservative, hidebound party leadership is putting their own interests ahead of their party’s and the party’s interests ahead of the nation’s,” Gou’s spokesman, Evelyn Tsai, told reporters Thursday. “Mr. Gou won’t miss this party.”(Updates with Gou quote in third paragraph.)\--With assistance from Adela Lin.To contact the reporter on this story: Samson Ellis in Taipei at firstname.lastname@example.orgTo contact the editors responsible for this story: Brendan Scott at email@example.com, ;John Liu at firstname.lastname@example.org, Karen LeighFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Aides to Foxconn founder Terry Gou visited Taiwan’s top election agency about the paperwork needed to wage an independent campaign for president, in the latest sign the billionaire is inching toward a run.Gou spokeswoman Evelyn Tsai told reporters during a visit Tuesday to the Central Election Commission in Taipei that she was inquiring about petition procedures. While she said Gou has yet to make up his mind, independent candidates must apply for petitions by Sept. 17 for a chance to compete in the January election.“The campaign office is doing preparation, with final decision to be made by Gou,” Tsai said. She was accompanied by a top political consultant to Taipei Mayor Ko Wen-je, who was expected to back any Gou run.Speculation that Gou might mount an independent bid to unseat incumbent President Tsai Ing-wen has swirled since he lost a primary to run the opposition Kuomintang line to Kaohsiung Mayor Han Kuo-yu. A three-way race would inject new uncertainty into what was shaping up to be a showdown between contrasting visions of ties with China.The polls show that a three-way election could be tight. The latest weekly tracking survey released Tuesday by the Apple Daily newspaper showed Tsai leading with 33.7%, compared with 28.9% for Han and 25.6% for Gou.Gou, who in June quit as chairman of Hon Hai Precision Industry Co., Foxconn’s main listed arm, built the company from a maker of television knobs into a global powerhouse that is now Apple’s biggest supplier and China’s largest private employer. Gou also has ties to President Donald Trump, meeting the U.S. leader at the White House in May.\--With assistance from Adela Lin and Debby Wu.To contact the reporters on this story: Miaojung Lin in Taipei at email@example.com;Samson Ellis in Taipei at firstname.lastname@example.orgTo contact the editors responsible for this story: Brendan Scott at email@example.com, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
China Labor Watch released a detailed report about the conditions at Foxconn’s manufacturing facilities. Foxconn is a major supply chain partner for Apple.
New York City-based CLW said in a report over the weekend that it has evidence the upcoming iPhone 11 is being illegally produced at Foxconn facilities in China. The watchdog group said the percentage of dispatch or temporary workers at Foxconn facilities make up more than 50% of the entire workforce. "Apple and Foxconn know that the issue with dispatch workers is in violation of labor laws, but because it is profitable to hire dispatch workers, they haven't addressed the issue.
Apple denies most of the accusations leveled against it and manufacturer Foxconn regarding its Chinese operations and how they treat workers who assemble its iPhones.