Hon Hai beats estimates as China factories lower costs

Hon Hai Precision Industry Co, the Taiwan-based assembler of Apple Inc's iPhones and iPads, posted second-quarter profit that beat analyst estimates as it lowered costs by building factories in inland China.

Net income rose 41 percent to NT$17 billion ($567 million) from NT$12 billion a year earlier, the company said on Tuesday.

The average of 14 analyst estimates compiled by Bloomberg was for profit of NT$15.5 billion.

Hon Hai sales have gained on stronger demand for non-Apple products while the second half may see the release of new versions of the iPad and iPhone.