Foxconn's first quarter sales drop as iPhone demand slows down

Foxconn's first quarter sales drop as iPhone demand slows down
Hon Hai Precision Industry, better known under its trading name Foxconn, has reported a big, 19% drop in sales amidst slow demand for the Apple iPhone in the first quarter of the year. Foxconn is an electronics manufacturer most known for making the iPhone, but it is also the company putting together Amazon Kindles, as well as most game consoles.

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?

source: Reuters




Posts: 4851; Member since: Apr 13, 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: Mar 25, 2013

The reply for this will be cheaper and lots of variants iPhone products.

2. Topcat488

Posts: 1417; Member since: Sep 29, 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: 1236; Member since: Sep 26, 2012

there are rumours about a 4.8 inch iPhone Math...will be interesting to see how it plays out

3. BigBoss10

Posts: 279; Member since: Aug 31, 2012

Thats the biggest news...yeah baby :D

4. tiara6918

Posts: 2263; Member since: Apr 26, 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: 217; Member since: Apr 06, 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: 875; Member since: Oct 17, 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 unregistered

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: 31529; Member since: Feb 05, 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: 2383; Member since: Jul 18, 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".

12. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

Well said

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