Foxconn has pulled in a whopping $131.8 billion in earnings

Having reportedly snagged the bulk of iPhone 6 orders from Apple, Taiwanese manufacturer Hon Hai Precision Industry, a.k.a. Foxconn, has every reason to be happy. Earlier today it announced record breaking consolidated revenues of $131.82 billion for last year, while company chairman Terry Gou commented that he expects this year’s earnings to be even better. Interestingly, Gou had some choice words to say about wearables, however — which is slightly surprising given how closely the company’s success is tied to Apple, which is expected to enter the wearables market with its forthcoming iWatch, supposedly coming this October. Speaking about the future of mass market tech, Gou dismissed wearable devices – saying that they headed in two development directions: one being as a fashion accessory, and the other an extension of smartphones. Gou believes that neither direction will go all that far.

Foxconn Electronics (Hon Hai Precision Industry) has announced consolidated revenues of NT$3.95 trillion (US$131.82 billion) for 2013, a new historic high, with EPS growing to NT$8.16, up from the NT$8.03 of 2012. Company chairman Terry Guo expects the company’s profits to grow on year in 2014. Commenting on its distribution of dividends of NT$1.80 in cash and NT$1.20 in stock, Guo said that he is confident about Foxconn’s revenue growth; therefore, the company’s stockholders do not need to worry about EPS being diluted. Guo also announced new investment plans for the second half to utilize its cash and bring in more profits. Currently, Foxconn is the second-largest handset maker in the world in terms of annual shipments, behind only Samsung, and is the largest tablet maker. Foxconn is also involved in 60% of the worldwide server production, Guo added. Guo also commented on wearable devices and said that he believes smart robots will have a wider path in terms of development in the future than wearable devices. He believes that wearable devices are heading mainly into two development directions: one is to become a fashion accessory and the other an extension of smartphones. However, both paths are lacking factors to attract demand and therefore are unlikely to go far, noted Guo, adding that wearable devices will still require a few more years before taking off like smartphones did. He believes wearable devices will need to combine with personal health monitors to become useful, but without first building up an ecosystem to support such an application, wearable devices are likely to become just short-term toys.

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