Hon Hai Precision Industry Co. posted a quarterly profit that exceeded forecasts, thanks to solid demand for  Apple Inc.'s flagship iPhone X.
The world's largest electronics contract manufacturer  reported net income of NT $ 71.7 billion (US $ 2.5 billion) in the three months to December, based on calculations of previously reported profits. That exceeded the projected NT $ 58 billion after high revenues of NT $ 1.73 billion.
Hon Hai, part of Foxconn Technology Group of billionaire Terry Gou is the only maker of Apple's most valuable gadget from robust sales of the iPhone X, despite initial fears that it has bottomed out with consumers. Hon Hai's outperformance suggests that it was postponed after initial hiccups in the unit's production when it struggled with parts bottlenecks. Last month, Apple Chief Executive Officer Tim Cook said on a earnings survey that the iPhone X was the best-selling smartphone on vacation, quotes research firm Canalys.
Hon Hai gets more than half of Apple's revenue from but Gou is looking for ways to not limit himself to gadgets – especially as the smartphone market spits. He now takes on Foxconn Industrial Internet Co., a subsidiary focused on cloud services and intelligent manufacturing, in China. Arthur Liao of Fubon Securities in Taipei estimates that the market value of FII could reach 269 billion yuan ($ 43 billion) compared to Hon Hai's $ 56 billion in a March 13 note.
Read more: Apple's IPhone Maker Readies China's Biggest IPO since 2015
Hon Hai does not offer revenue breakdowns, forecasts, or hold investor conferences. Its shares rose 1.6 percent before profit, but declined 4 percent this year.