Foxconn Posts Record Q1 Profits On Strong Sales Of Apple’s iPhone 6

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Recently, Hon Hai pulled in NT$30.39 billion which is around $998 million, this was in net profits during the March quarter, which The Wall Street Journal reported on Friday. Facing pressure from asset manager BlackRock, which they increased their dividend payout from NT$1.80 per share to NT$3.80, or from roughly 6 cents to 12 cents.

Close to half of Hon Hai’s revenues come from Apple orders. The company has been looking to change stuff up with things like an online retail platform and partnerships with U.S. medical device makers, particularly in light of growing competition for Apple contracts, and slowly-rising Chinese labor standards which are pushing wages higher.

Hon Hai saw profits grow 33% during the December quarter, and analysts told the The Wall Street Journal that recent trends are expected to continue into the June quarter, again based on iPhone sales.

Daiwa Capital Markets analyst Kylie Huang recently said that “A lot of consumers are still in the process of replacing their old phones with large-screen iPhones.”

High sales of the iPhone 6 and 6 Plus have often been credited to pent-up demand for larger screens. As recently as 2011 iPhones were still using 3.5-inch displays, and that only improved to 4 inches in 2012, despite Android smartphones approaching or exceeding 5 inches.

Last year’s iPhone 6 grew to 4.7 inches, while the 6 Plus leaped ahead to 5.5. Some Android phones are now even bigger, one example being the 6-inch Nexus 6 by Google and LG.