Foxconn sees 19% decline in sales after 'disappointing' demand for Apple's iPhone

Posted:
in iPhone edited January 2014
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.

Foxconn


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.
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Comments

  • Reply 2 of 78
    philboogiephilboogie Posts: 7,435member
    That truly is fantastic news for the stock ¡

    I thought Foxconn wasn't the only manufacturer?
  • Reply 3 of 78
    philboogiephilboogie Posts: 7,435member
    quadra 610 wrote: »

    That's profit; leading others to a conclusion that there is indeed an Apple Tax.
  • Reply 4 of 78
    47.8m * 0.81= 38.7m. Still on top of most estimates for this Q.
    Oops YoY, not QoQ...
  • Reply 5 of 78
    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.

    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 .
  • Reply 6 of 78
    red oakred oak Posts: 629member
    It appears this is an analyst's assumption and not a statement from Foxconn

    Apple is 60% of Foxconn's business. Foxconn accounts for 70% of iPhone builds
  • Reply 7 of 78
    rogifanrogifan Posts: 10,669member
    Ok so Foxconn didn't say this, some Wall Street analyst did. I thought Foxconn just manufactured for Apple. What are the sales exactly?
  • Reply 8 of 78
    asterionasterion Posts: 107member
    So much shorting of Apple, so little time.

    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
  • Reply 9 of 78
    dcgoodcgoo Posts: 203member

    Quote:

    Originally Posted by Rogifan View Post



    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.

  • Reply 10 of 78
    rogifanrogifan Posts: 10,669member
    dcgoo wrote: »
    Foxconn manufactures stuff for everybody and their grandmother. Not just Apple.
    No I meant I thought that's all they did for Apple. So, sales of what exactly are down 18%?
  • Reply 11 of 78
    Maybe Apple had Foxconn over-produce in the previous quarter.
  • Reply 12 of 78


    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.

     

  • Reply 13 of 78
    thecorethecore Posts: 56member


    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.    


  • Reply 14 of 78
    tailpipetailpipe Posts: 345member
    What seems to be undeniable is that the IPhone 5 isn't selling as well as previous versions in Apple's core markets. You could say that it hasn't been perceived as a big enough upgrade versus the 4S to persuade existing customers to switch. I remember someone describing the iPhone 5 as iPhone 4s ii.

    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.
  • Reply 15 of 78
    eauviveeauvive Posts: 237member


    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.

  • Reply 16 of 78
    rogifanrogifan Posts: 10,669member
    tailpipe wrote: »
    What seems to be undeniable is that the IPhone 5 isn't selling as well as previous versions in Apple's core markets. You could say that it hasn't been perceived as a big enough upgrade versus the 4S to persuade existing customers to switch. I remember someone describing the iPhone 5 as iPhone 4s ii.

    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.
    What stats do you have to back this up? Apple doesn't break out sales by model. All we know is 1) in the first weekend of sales the iPhone 5 broke the previous record set by the iPhone 4S, and 2) the ASP last quarter wasn't significantly lower than previous quarters. What factual data points do you have which indicates iPhone sales are soft because Apple doesn't offer a bigger screen size?
  • Reply 17 of 78
    tallest skiltallest skil Posts: 43,399member


    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.

  • Reply 18 of 78
    Went to the Apple store yesterday and NOBODY was at the iPhone table. The phones were sitting there untouched.
  • Reply 19 of 78
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by ralphdaily View Post

    Went to the Apple store yesterday and NOBODY was at the iPhone table. The phones were sitting there untouched.


     


    Apple is obviously doomed¡ image

  • Reply 20 of 78
    zoffdinozoffdino Posts: 192member

    Quote:

    Originally Posted by ralphdaily View Post



    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.

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