Apple supplier Foxconn says profits fuelled by holiday season demand

Taipei - Key iPhone supplier Foxconn posted "better-than-expected" profits in its third quarter, with leadership on Tuesday attributing the surprise jump to demand ahead of the holiday season.

The firm - also known by its official name Hon Hai Precision Industry - is the world's biggest contract electronics manufacturer and assembles devices for several companies, most notably Apple's iPhones.

It said net profit for July-September rose to Tw$43.1 billion (US$1.3 billion) from Tw$38.8 billion in the same period last year.

"We have entered the traditional peak season in the second half and our operations are set to gradually improve quarter on quarter," CEO Young Liu said during an earnings call.

"These performances were better than expected in the first half of the year."

Tuesday's results follow consecutive quarterly profit misses - with January-March seeing a drop of 56 percent and a one percent fall in the next three months.

Liu added that he expected "robust growth in revenue" for consumer smart products during the fourth quarter.

A million workers employed

Foxconn is China's largest private-sector employer, with more than a million workers nationwide.

Chief financial officer David Huang sought to reassure investors during Tuesday's call.

"At present, the group's production and operations are all normal," he said. "We will actively cooperate with the operations of relevant units and hope to complete the relevant work as soon as possible to alleviate everyone's concerns about the uncertainty."