Foxconn's first quarter sales drop as iPhone demand slows down
Hon Hai posted sales of nearly $27 billion for the January-March period, a huge decline from the some $32.98 billion sales in Q4 2012 and the $33.37 billion in Q1 2012.
"A quarterly decline was expected, but not a yearly decline," Ming-chi Kuo, an analyst with KGI Securities said.
Hon Hai has obviously become too dependent on Apple relying on it for 60% to 70% of its revenue stream.
We have been hearing talks about Apple fading out of relevance for years on, but this time we have a trend of Apple stock going down and now these negative signals from Apple’s biggest manufacturer.
Is this the beginning of the end as analysts have long speculated, or just normal seasonal fluctuations that Apple will overcome with its forthcoming 2013 device portfolio, what do you think?
1. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)
Hahaha Lmfao, what good news™
Same booring ios for the last 5 years™
People, consumers, and even loyal and hardcore fans are getting pissed off.
But how dose consumers sacrafice, I see alot of iphones with cracked screen, slot of iPhone users charging there phone in middle over no where, even on trains Airports.
And they still go thro the agony just for the sake of the being trend and being cool™
5. TechBizJP08 (Posts: 495; Member since: 25 Mar 2013)
The reply for this will be cheaper and lots of variants iPhone products.
2. Topcat488 (Posts: 1138; Member since: 29 Sep 2012)
Apple must make more than 1 iphone a year, and in all sizes, not one fits all... It's happening that they started with the cheaper market iphones, but it happened too late. Good Luck!
8. PhenomFaz (Posts: 1066; Member since: 26 Sep 2012)
there are rumours about a 4.8 inch iPhone Math...will be interesting to see how it plays out
4. tiara6918 (Posts: 1391; Member since: 26 Apr 2012)
I'm worried about the foxconn employees,they're already being treated like slaves there and now with the low demand, I have a feeling that they will be getting a low and unfair wage
6. Antonyjoseph (Posts: 213; Member since: 06 Apr 2013)
Apple phones are so overpriced that, even if they sell few phones, they will continue to make a pile of cash.
7. ryq24 (Posts: 485; Member since: 17 Oct 2011)
Unless the iPhone 5S has a 5" screen, apple decline will continue. And with how fast new phones are coming out by the time apple decide to come out with a 5" iPhone next year, it might be too late.
9. stealthd (Posts: 948; Member since: 12 Jun 2011)
Apple beat their Q1 expectations, don't know why the word "disappointing" keeps getting thrown around when they continue to break records and meet or exceed estimates. Foxconn also makes stuff for Dell and HP which have been in decline lately.
10. darkkjedii (Posts: 10966; Member since: 05 Feb 2011)
Every year this happens as rumors of a new model pick up steam. Why would anyone even be one bit surprised to hear this.
11. roscuthiii (Posts: 1788; Member since: 18 Jul 2010)
Exactly. This happens every year, but certain outlets like to regurgitate it for the views/clicks. Foxconn also just went on a hiring spree recently if memory serves so they also apparently are really busy producing right now. Then they'll gush when they report record profits in the upcoming quarters.
I guess it doesn't help that we perpetuate this practice to be continued by responding to them though. Have got to learn to scroll past this "news".