Apple smartphones are designed in the US, the advertising campaign is headquartered in the US but the phones are manufactured in Taiwan. One method to understand how well sales in the cellphone market are is to hear from the company which manufacturers the cellphone.
In an article by Yimou Lee and Sarah Wu of Reuters, Foxcomm gave a cautious outlook for the current quarter after posting results that exceeded expectations.
At present due to the loyal and relatively affluent customer base, Foxcomm believes rising prices will only have a limited impact on the mid-to high-end smartphone demand in the rest of the year.
Chairman Liu Young-way said on the whole, we are slightly more cautious but we could see growth. Both Foxcomm’s net profit and revenue for April-June quarter rose 12%. Mr. Lui said our customers, and ourselves, we are all large global technology companies and have relatively strong supply chain management abilities. This advantage allows us to minimize the impact of any materials shortage.
Linking to dividend paying stocks, the strengths of Foxcomm selling iphones is the loyal and relatively affluent customer base along with being a global player. If you can find companies which have the same strengths, there are worth looking into.
There are more questions than answers, till the next time – to raising questions.