Foxconn sees 19% decline in sales after 'disappointing' demand for Apple's iPhone
Sales were down 19 percent in the first quarter at Foxconn, manufacturer of devices for Apple and others, in a decline that was reportedly driven primarily by lower iPhone sales.
Total sales were $808.97 billion Taiwan, or $26.96 billion U.S., at Hon Hai Precision Industry Co. Ltd., also known as Foxconn, in the quarter spanning from January to March, according to Reuters. The 19 percent year-over-year decline was attributed to "disappointing demand for the iPhone" in the report published on Wednesday.
Cited in the report was KGI Securities analyst Ming-chi Kuo, who indicated that a quarterly decline was expected, but a year-over-year drop was not. It's estimated that as much as 70 percent of Foxconn's revenue comes from assembling Apple's popular iPhones and iPads.
"This shows that Hon Hai's revenue depends too much on Apple, and iPhone orders corrected more than expected," Kuo said.
The news will likely further drive speculation that Apple could disappoint with its own forthcoming quarterly earnings. The company is set to report its own earnings for the January-to-March quarter on April 23.
As pessimism around Apple has grown, some market watchers have predicted that the company could potentially miss its own guidance for its second fiscal 2013 quarter. That's prompted some analysts to cut their price targets, while major shareholders have sold some of their positions in the iPhone maker.
Total sales were $808.97 billion Taiwan, or $26.96 billion U.S., at Hon Hai Precision Industry Co. Ltd., also known as Foxconn, in the quarter spanning from January to March, according to Reuters. The 19 percent year-over-year decline was attributed to "disappointing demand for the iPhone" in the report published on Wednesday.
Cited in the report was KGI Securities analyst Ming-chi Kuo, who indicated that a quarterly decline was expected, but a year-over-year drop was not. It's estimated that as much as 70 percent of Foxconn's revenue comes from assembling Apple's popular iPhones and iPads.
"This shows that Hon Hai's revenue depends too much on Apple, and iPhone orders corrected more than expected," Kuo said.
The news will likely further drive speculation that Apple could disappoint with its own forthcoming quarterly earnings. The company is set to report its own earnings for the January-to-March quarter on April 23.
As pessimism around Apple has grown, some market watchers have predicted that the company could potentially miss its own guidance for its second fiscal 2013 quarter. That's prompted some analysts to cut their price targets, while major shareholders have sold some of their positions in the iPhone maker.
Comments
I thought Foxconn wasn't the only manufacturer?
That's profit; leading others to a conclusion that there is indeed an Apple Tax.
Oops YoY, not QoQ...
driven primarily by lower iPhone sales.
I hate it using the passive voice , it means nobody will have to be responsible . It is highly believable that it is a makeup story as no source is given to prove the truth .
Apple is 60% of Foxconn's business. Foxconn accounts for 70% of iPhone builds
I heard from someone close to a source at Apple that they have "run out of ideas", that "things are desperate", and that "sales are down 75% since a while back". /s
#talkdownaapl
Quote:
Originally Posted by Rogifan
Ok so Foxconn didn't say this, some Wall Street analyst did. I thought Foxconn just manufactured for Apple. What are the sales exactly?
Foxconn manufactures stuff for everybody and their grandmother. Not just Apple.
I warned Cook last year that if he didn't include the flux capacitor there would be a significant drop off in sales in the later quarters.
according to Reuters.
If you read the actual Reuters story, there is no evidence journalism, entirely fabricated speculation by the writer.
Why AI republishes this garbage as fact is beyond all integrity.
Foxconn sales could be affected by a number of events having nothing to do with " attributed to "disappointing demand for the iPhone"
Since they do not break out sales, or offer guidance as to future business the writer is guessing at best. Clealy a planted story to knock
down the stock price.
I don't think the 5S can get away with being simply the same iPhone 5 design with a bump in specifications. There is genuine demand for an iPhone line-up that offers a range of screen sizes.
At the same time, it would be no wonder. It takes more that an aluminum casing and a (slightly) larger screen to tempt people into changing their not-so-old phone.
Compared to the bump iPhone 3 ? 4, the transition iPhone 4 ? 5 is just a plain botch.
Apple Go Private! Apple Go Private!
At this point when they announce that, I literally want Tim Cook to walk off the stage flipping the bird to the shareholders.
Originally Posted by ralphdaily
Went to the Apple store yesterday and NOBODY was at the iPhone table. The phones were sitting there untouched.
Apple is obviously doomed¡
Quote:
Originally Posted by ralphdaily
Went to the Apple store yesterday and NOBODY was at the iPhone table. The phones were sitting there untouched.
Saw the same thing at my local store too. It has been more or less the case since the holiday. Everyone was either at the iPad tables, or the Mac section. Tim Cook needs to reveal a bit of his "pipeline choke full of great products" to the world. Otherwise we will end up the same like last year, when Apple launched 6 major products back to back in the span of a few months.