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Foxconn shares rise after announcing strong quarterly profit

The company which manufactures Apple's iPhone 5 (opens in new tab) and iPad (opens in new tab) has announced an increase in its profits and share price.

The Taiwanese based Foxconn, also known as Hon Hai, said its net profit for the first nine months of the year rose 24 per cent to 57.8 billion Taiwan New dollars (£1.2 billion) compared to a year earlier.

As a result, its share price rose by two per cent in Taipei earlier today.

Hon Hai is the world's largest contract manufacturer and is well known for its factories in China that make Apple's iPhone and iPad products. It also makes products for other electronics companies including Hewlett Packard, Nintendo and Sony.

Although it has increased wages at most of its factories in China, Foxconn has repeatedly come under fire for poor working conditions and exploitation (opens in new tab). Earlier in the month, Foxconn admitted to using underage labour at its Chinese factories (opens in new tab) and just yesterday the firm was taken to court (opens in new tab) by the family of a worker who suffered brain damage following an accident in a factory in southern China.

Analysts say that the boost in Foxconn's profits are due to the strong demand for Apple products.

Foxconn said in a brief statement that it had achieved a notable market share gain "in the midst of the European led global economic uncertainty" but warned that it could not clearly predict future trends.