Foxconn And Pegatron Signaling Better Times For Apple But Does It Matter At Present?

Foxconn Electronics aka Hon Hai Precision Industry and Pegatron have both reported August consolidated revenues that came in higher than expected.

Both the giant original equipment manufacturers (OEM) derive a significant portion of their revenues from Apple and the increased revenues for August, ahead of the global launch of the iPhone7 this month, could be signaling better times lie ahead for Apple.

Of course, at the moment nothing matters, with the Fed on their jihad to raise rates which is causing a global rout in equity markets. Rising sales at Apple's OEMs or not, investors are in throw-the-baby-out-with-the-bathwater mode and all reasoning has been left behind with the Fed looming large.

Foxconn reported August revenues of $9.86 billion, up 6.72% month on sequential month and also up 6.75% from the same month a year ago. Meanwhile, Pegatron reported August revenues of $2.61 billion, up 0.22% month on month and up 9% versus the same month a year ago.

Analysts are expecting to see the two OEM giants report similar increases in revenues for September and October and the iPhone rolls out globally.

It should be interesting to see how much damage the Federal Reserve causes this time around (compared to the damage done in January and February of this year after the December 2015 rate hike) with their ill-advised crusade to raise rates yet again.

Be careful out there.

(Long aapl, options)