TAIPEI (Reuters) – Taiwan’s Foxconn, a key Apple Inc supplier, reported a 30 percent jump in September revenue on Thursday, boosting expectations for solid product sales for the American tech giant even as U.S.-China trade war escalates.
Apple’s products, largely manufactured in China, have so far been spared from U.S. import tariffs, but it could be put in the crosshairs of the escalating trade dispute as Washington has threatened to expand the tariffs to almost all goods from China including iPhones.
Foxconn, formally known as Hon Hai Precision Industry Co Ltd, said in a stock exchange filing that revenue rose 30 percent to T$584.93 billion ($18.8 billion) in September, extending a streak of double-digit growth since May.
The strong monthly result, its second best ever, brings Foxconn’s both nine-month and third-quarter revenues to record highs, a company official told reporters.
“This time, the three biggest product lines in terms of month-on-month and annual increase comes in this order: consumer, computing, and communications,” the official said, without elaborating what the categories consist of.
Caught in the middle of the intensifying trade dispute, the world’s largest contract electronics manufacturer warned in June that the spat between China and the United States was the biggest challenge it was facing.
China is a major production base for Foxconn, while the United States is a key market for the manufacturer.
Shares in Foxconn closed down 6.9 percent on Thursday, versus a 6.3 percent drop in the wider market that came under pressure after Wall Street faced its worst drubbing in eight months overnight.
Last month Apple introduced its largest-ever iPhone and a watch that detects heart problems in an attempt to get customers to upgrade to more expensive devices amid stagnant global demand for smartphones. It reports the September quarter results on Nov. 1.
($1 = 31.0890 Taiwan dollars)
Reporting by Jess Macy Yu and Hong Kong slot team; Editing by Miyoung Kim and Himani Sarkar