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Foxconn reported record profits due to iPhone 6

Foxconn announced record earnings growth in the first quarter of 2015. The rise associated with the successful sales of the iPhone 6 and iPhone 6 Plus, Assembly which is engaged by the Taiwanese manufacturer.

Net profit of Foxconn in the first quarter of 2015 reached $998 million, up 56% compared with the same period last year and 33% more than in the previous quarter. And the size of dividends following the results of last quarter was doubled from 6 to 12 cents. A large portion of income was generated through the execution of orders of the California giant. Foxconn expects that earnings growth will continue in the current quarter due to the growth of iPhone sales.

Some analysts believe that the successful sales of the iPhone 6 and iPhone 6 Plus are connected with a pending demand for large displays. Until recently, Apple used a 4-inch display, although the Android manufacturers equip their 5 – and 6-inch panels.

“Many consumers continue to trade in their old device for the new iPhones with larger screens,” commented the report, Foxconn analyst at Daiwa Capital Markets Kylie Juan.

Meanwhile, another Taiwanese manufacturer engaged in contractual assembling Apple devices, explained the deficiency of the Apple Watch labor shortages. Vice-Chairman of Quanta Computer said that the volume of production of smart hours Apple Watch were limited due to the lack of staff who would carry out their Assembly.

Top Manager emphasized that computerized watches Apple is no longer a problem for Quanta in terms of quality and technology. Currently, the delivery of many of the models fell to 5-7 weeks from the date of registration of the order in the official Apple online store.

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