Jump in Foxconn earnings point to strong iPhone XS sales

When Apple releases the iPhone XR later this month, the device will undoubtedly become the most popular model in Apple’s 2018 iPhone lineup. And with good reason, the iPhone XR boasts nearly all of the bells and whistles of Apple’s iPhone XS models. Indeed, the main difference is that the iPhone XR incorporates an LCD display as opposed to an OLED display. Still, with the iPhone XR priced at $749, it provides one of the strongest value propositions we’ve seen in an iPhone in quite some time.

All that said, there’s mounting evidence that Apple’s iPhone XS models are actually selling more briskly than initially anticipated. To this point, a new report from Reuters relays that Foxconn’s revenue during the recent third quarter jumped by 30% and reached a record high. Now because Foxconn manufactures the iPhone, it’s no secret that its financial well-being is often a function of how strong iPhone demand happens to be.

Reuters’ report reads in part:

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.

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.

We’ll have a firmer grasp on how iPhone sales are doing once Apple posts its earnings report for the third quarter on November 1. Incidentally, Apple is expected to post revenue in the $60 billion to $62 billion range. As a point of contrast, Apple during the September quarter last year posted revenue of $52.6 billion.

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