Foxconn reports disappointing quarter just before iPhone 8 era begins

Foxconn reports disappointing quarter just before iPhone 8 era begins
For the company's last three-month earnings report prior to the Apple iPhone 8 "era," contract manufacturer Foxconn disappointed global financial professionals and investors by reporting lower than expected profits for the calendar second quarter. Foxconn is known for assembling various devices, none more famous or popular than the Apple iPhone. There is speculation that the tenth anniversary iOS handset, a premium model, is already undergoing mass production inside certain Foxconn facilities.

For the quarter ended in June, Foxconn reported net of $589 million USD. That is a 25% shortfall from the $781.5 million that analysts were expecting. Part of the reason for the shortfall has to do with the current dynamics in the smartphone market. While the number of smartphones shipped during the quarter rose only 3%, most of the growth came from Chinese manufacturers like Huawei and Oppo that employ their own assembly plants.

Foxconn has been looking to cut costs by adding more robots to its assembly lines. While the company has its hand in the production of such varied tech items like PCs to video games, Apple alone makes up over half of the firm's top line revenue. As a result, there is some talk that iPhone 8, with a more complicated build than current iPhone models, could actually have a negative impact on Foxconn's next quarterly report. One Foxconn executive recently took to social-media to report that only 60% of the OLED panels received from the supply-chain have been good enough to meet the exacting standards set by Apple. The problem apparently has to do with a special cut needed at the top of the panel.

For the moment, it appears that Apple will be unveiling its 2017 lineup next month at the traditional time. KGI securities analyst Ming-Chi Kuo did send a report to clients at the beginning of the week telling them to expect only 2 million to 4 million iPhone 8 units to be available when the product launches, presumably next month.

source: Bloomberg

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16 Comments

1. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

No one makes money with Apple...well except Apple! Derp!

2. kiko007

Posts: 7491; Member since: Feb 17, 2016

Are you retarded?

5. XperiaFanZone

Posts: 2277; Member since: Sep 21, 2012

It was a reference to an apple fantroll, who makes multiple account for upvotes. I think they're still here, he has dp of some yellow circle

8. joeytaylor

Posts: 957; Member since: Feb 28, 2015

Nobody trolled like bobbybuster

15. sgodsell

Posts: 6902; Member since: Mar 16, 2013

I find it kind of funny that 40% of the so called panels are rejected. Are these rejected after Foxconn has made that cutout notch on the top of the panels? If so I guess this is a good way to get people ready to bend over, and pay the $1000-$1200 for the new iPhone 8. As if cutting the $35 panel justifies those extra price hikes.

13. TheOracle1

Posts: 2074; Member since: May 04, 2015

Lol. It hurts doesn't it? Apple always win....... for now. This is just more evidence that their business model is exploitative all the way from the supply chain to the consumer. The retards are people like you who drink the kool-aid.

3. maple_mak

Posts: 953; Member since: Dec 18, 2013

This person sicked like cnour, HillaryClintion2020, other Android/Apple haters, etc...

7. domfonusr

Posts: 1073; Member since: Jan 17, 2014

I have no doubt that when Apple makes it to the top, they will be standing on a mountainous pile of dead corporations whom they have vanquished, whether they be direct competitors or just suppliers subjected to the death-match competition that Apple puts them through to squeeze them dry while they are working for Apple...

9. Xilam unregistered

In my opinion, most of corporations FIGHT to get Apple's Business. Read the article "Apple alone makes up over half of the firm's top line revenue". That's half of their business that would not even exist if it wasn't for Apple. I bet same goes for Samsung Manufacturing Plants, Qualcomm, etc. Not trying to sound biased, but that's just a corporate business fact. Apple unfortunately does have leverage to negotiate vendor's deals really low - because of mass production of Apple devices - but for some reason, these manufacturers still want it, and they do compete with others to win that business. Personally I do wish apple falls on their ass sooner than later, look at Samsung - they had a terrible downturn around Galaxy S5 era, (I'm NOT talking about Note7 problems) and they now build some of the most beautiful devices in the mobile industry. Tim is a numbers guy and he's destroying Apple's creative side by playing it safe. A shake up in "staff" would be great! I was convinced that J.Ive hit bottom when I saw iPhone 6 released, lol. They need new talent and new ideas guy.

11. Leo_MC

Posts: 6710; Member since: Dec 02, 2011

I, on the other hand, think iPhone 7 is a beautiful designed and crafted device, way better than iPhone 5 (although uglier than 4).

12. Xilam unregistered

I agree, the camera hump design and the black mate color with black Apple logo on iPhone 7 looks absolutely stunning. I just hate the ugly top and bottom bezels. iPhone 5/5s is by far my most favorite design compared to all devices, not just Apple. Any other color specially with white front looks terrible. Now, would you agree that the so-called leaked designs of the iPhone 7s/8 with the bump look ugly compared to the unibody hump design of the 7? I don't mind the notch to be honest - with control that Apple has over app guidelines - im sure the notch will be omitted/used for the apps coherently and the extra tabs of screen on both sides could be used for extra control or info in games and apps. But the rear of the iPhone leaks looks terrible to me. I'm really hoping there will be an all aluminum option, instead of glass, even if there's no inductive charging.

14. Leo_MC

Posts: 6710; Member since: Dec 02, 2011

I'm not one to comment based on leakes.

10. Leo_MC

Posts: 6710; Member since: Dec 02, 2011

Apple is already on top and their partners are there with them...

4. Atrixboyyy

Posts: 581; Member since: Nov 03, 2011

It's funny how well certain companies do at the start of a relationship with Apple. Only good ending these days is if they're bought out .

6. notfair

Posts: 698; Member since: Jan 30, 2017

so they are putting unrealistic targets and afterwards fire people.... hire robots... makes sense.. what will happen when later on they will put the same unrealistic targets? they will fire the robots and? these f**kers don't understand that the population of the globe is getting poor, everything goes (rent, food, cars, electronics, houses etc) up and yet the salaries stay the same or even lower, how rich these f**ks wanna get in the end? because at some point money doesn't make sense... this makes me sick.

16. Xilam unregistered

Your argument is one sided, bro. I get it, but it's not a complete picture. My family is one of the poor populations you described - not ashamed of it. I don't have a house (YET!) and temporarily I rent two rooms and a bathroom and share a house with another family, because I made some wrong economic decisions (not because corporations are rich). But, I believe capitalism works better overall than socialism - look at the vast contrast of nations with both types of economies overall economic health. The only country that had succeeded in economic growth with Socializm was Japan - but even that had strong capitalistic roots - and soon became a capitalist country alltogether as socialism wouldn't allow the country to continue growing its economy. Just so you know, I'm a guy who frequents tech sites - absolutely passionate about the progress mobile tech is making - but can't afford a new device (and carrier plan required to make use of that device).

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