Apple’s latest handset to drive business for two major partners

Oct 11, 2011 14:11 GMT  ·  By

Foxconn and Largan are happy to be partners with Apple for the production of the company’s iPhone 4S, with both vendors mentioning their contracts with Apple as beneficial.

The two companies have deals signed with Apple for either producing parts for the handset, or for assembling the whole phone.

Tasked with producing the lens that go over the 8 megapixel image sensor in the iPhone 4S, Taiwan-based Largan Precision expects its shipments to decrease in the fourth-quarter of 2011.

However, per a Digitimes report, the OEM expects the proportion of 8-megapixel lens modules to keep increasing from 10% of total shipments in Q2 to 30% in September and to over 30% in Q4.

The reason cited by Largan for this surge is adoption by Apple for iPhone 4S, and by HTC for their own products.

Foxconn Electronics (owned by Hon Hai Precision Industry) is the company that actually assembles the whole iPhone.

Run by Chinese magnate Terry Gou, Foxconn has reported non-consolidate revenues of NT$221.780 billion (US$7.45 billion) for September, according to the aforementioned Taiwanese trade publication.

The growth is 3.43% on month, but dropping 12.50% on year, says the report.

Foxconn has recorded revenues from PC and communication products in September that almost match those in August.

Revenues from consumer electronics, however, have increased, according to Foxconn officials.

Yet Foxconn also heavily relies on Apple. According to the Taiwanese source (citing industry sources), Foxconn expects its production of the iPhone 4S to drive sales for the entire fourth fiscal quarter.

Pre-orders for the iPhone 4S have been green-lighted since last week, but shipments are to arrive only this Friday.

Apple and the partnering carriers have already sold out their stock, which means Foxconn will be pushed to make more devices, possibly increasing their own revenue expectations.

The same goes for all those who contribute to the making of the handset, including part manufacturers.