Apple assembly partner Foxconn reports disappointing quarter ahead of 'iPhone 8'

Posted:
in iPhone edited August 2017
Hon Hai -- better known as Foxconn -- reported net income of just $589 million in the June quarter, missing analyst forecasts ahead of Apple's launch of the "iPhone 8" and "iPhone 7s" this fall.




The consensus forecast had been about $781.5 million, Bloomberg said on Friday. No official Foxconn explanation for the results was immediately available.

Apple represents about half of Foxconn's sales however, primarily from the iPhone. The June quarter is typically a slow period for that product, since the initial launch/holiday rush has long faded and many shoppers are waiting to see what Apple will debut in the fall.

Foxconn may have been hampered by alleged production delays for the "iPhone 8" -- several earlier rumors hinted at problems with the device's OLED screen, and even late decisions on whether or not to embed Touch ID in it. It's now thought that Apple has dropped any such plans, and may even be using the phone's 3D facial recognition as a total replacement.

Even if the phone ships in September, it may only arrive in limited quantities. Some reports have pointed to a launch as late as November.

The "iPhone 7s" and "7s Plus" will likely arrive in September and in significant quantities, but with only some of the upgrades present in the "iPhone 8." While they may sport "A11" processors and wireless charging, for instance, they should have 4.7- and 5.5-inch LCDs, and retain physical home buttons in place of the virtual one on the "iPhone 8." It's also unclear whether they'll have any facial recognition technology.

Comments

  • Reply 1 of 10
    lkrupplkrupp Posts: 7,162member
    This can mean only one thing...
    quadra 610baconstangwatto_cobra
  • Reply 2 of 10
    lkrupp said:
    This can mean only one thing...
    You mean that the sun will rise in the West? :)
    watto_cobra
  • Reply 3 of 10
    larryjwlarryjw Posts: 397member
    So they missed analysts forecasts. What was Foxconn's forecast? 
    lolliver
  • Reply 4 of 10
    gatorguygatorguy Posts: 20,916member
    larryjw said:
    So they missed analysts forecasts. What was Foxconn's forecast? 
    I don't find where they forecast future results. 
  • Reply 5 of 10
    What about sales from the half Apple doesn't represent? Isn't it possible those other companies have had slow sales?
    watto_cobralolliver
  • Reply 6 of 10
    gatorguygatorguy Posts: 20,916member
    What about sales from the half Apple doesn't represent? Isn't it possible those other companies have had slow sales?
    Absolutely possible that ALL of their customers have slowed down. Foxconn is also hurt by the fact the fastest growing OEM's like Huawei do their own assembly rather than outsource to Foxconn. 
    edited August 2017 aylk
  • Reply 7 of 10
    lkrupplkrupp Posts: 7,162member
    What about sales from the half Apple doesn't represent? Isn't it possible those other companies have had slow sales?
    No. It’s all about doomedness.
    watto_cobraanantksundaramradarthekatlolliver
  • Reply 8 of 10
    lkrupp said:
    What about sales from the half Apple doesn't represent? Isn't it possible those other companies have had slow sales?
    No. It’s all about doomedness.
    Yup, despite the fact that Apple had a better Apr-Jun quarter this year compared to last year.
    watto_cobra
  • Reply 9 of 10
    robjnrobjn Posts: 222member
    They obviously are not going to make any money off of a product they have only just started assembling.

    Perhaps they have invested more money than usual in gearing up for assembly of three new iPhones.
    watto_cobralolliver
  • Reply 10 of 10
    512ke512ke Posts: 782member
    Wow, new iPhones are a flop before even going on sale. They didn't sell before you could even buy one. That must be the irrevocable conclusion, right? /sarcasm
    watto_cobra
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