Apple Profit Margins Rise at Foxconn’s Expense: Chart of the Day
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Apple Inc.’s margins have widened at the expense of its main supplier as Foxconn Technology Group cuts prices to retain orders for iPhones and iPads.
The CHART OF THE DAY compares the operating margins of Apple, which has surpassed 30 percent, and Hon Hai Precision Industry Co., Foxconn’s Taipei-listed flagship. Hon Hai’s profit spread narrowed after the iPhone debut in June 2007 and has tightened further since April 2010, when the iPad tablet computer went on sale, data compiled by Bloomberg show. Operating margin measures the profit a company makes from its core business, excluding one-time items and investment gains.