What’s it so worried about?
Predictions that Apple contractor Hon Hai had bumper fourth quarter profits prompted a rush statement from the Taiwanese maker early today [December 13th 2014], seemingly down-playing the reports. Hon Hai, whose trading name is Foxconn, quickly rebutted the reports in Chinese tabloid Apple Daily which claimed that the Q4 profit margins would hit 8 per cent, with net margins of up to Taiwanese $40 billion, compared to 7 per cent in the third quarter.
Hon Hai stressed that the estimates had come from institution analysts, and had not stemmed from the company itself – which would be counter to stock exchange rules.
But the rushed statement in London, on Reuters News Service, probably raised more questions than it answered.
Apart from concerns about possibly breaking regulations governing the posting of financial results, it could be that Hon Hai was more worried about the implications for Apple, a key partner and for whom it makes iPhones.
Apple is notoriously sensitive about its internal affairs, particularly of a financial nature, and in the past sub contractors who’ve leaked information inadvertently or otherwise have soon been axed.
As such, if the predictions about Hon Hai’s Q4 results are correct, it could point to a bumper time too for Apple, impacting its share price.
Meanwhile today, Hon Hai was sticking firmly to the corporate line stating, “The company did not provide any projected financial reports to the public and all the financial statements will only be posted on the MOPS (the Taiwanese stock exchange’s own regulatory news service) which is regulated by the rules of government.”