Foxconn smartgear unit IPO seeks to break financial addiction to Apple's iPhone
Foxconn is aiming at a $4.3 billion initial public offering for Foxconn Industrial Internet, a manufacturing arm specializing in things like servers and IoT accessories.
Despite nominally strong performance, Foxconn chairman Terry Gou has reportedly complained that the iPhone X didn't meet high expectations, according to Bloomberg. The publication observed that Foxconn's market value has plummeted by over $20 billion since June 2017.
"Foreign institutional investors have linked the performance of our shares to that of Apple's," Gou said at a January shareholders meeting. Apple "didn't do well in December," he continued, noting that Foxconn wants its non-Apple businesses to take up a larger portion of sales.
Apple CEO Tim Cook has indicated that the iPhone X has remained the top-selling iPhone model each week since its November 2017 launch. Both Apple and Foxconn may have been hoping for a runaway hit though, something less likely given shrinking smartphone markets.
The phone's $999-plus pricetag has likely been an obstacle for many shoppers, but Apple could remedy that with this fall's iPhones. The company is believed to be preparing three models: 5.8- and 6.5-inch OLED devices, and a 6.1-inch LCD product. Both the 5.8- and 6.1-inch phones could slot below the $999 mark.
Despite nominally strong performance, Foxconn chairman Terry Gou has reportedly complained that the iPhone X didn't meet high expectations, according to Bloomberg. The publication observed that Foxconn's market value has plummeted by over $20 billion since June 2017.
"Foreign institutional investors have linked the performance of our shares to that of Apple's," Gou said at a January shareholders meeting. Apple "didn't do well in December," he continued, noting that Foxconn wants its non-Apple businesses to take up a larger portion of sales.
Apple CEO Tim Cook has indicated that the iPhone X has remained the top-selling iPhone model each week since its November 2017 launch. Both Apple and Foxconn may have been hoping for a runaway hit though, something less likely given shrinking smartphone markets.
The phone's $999-plus pricetag has likely been an obstacle for many shoppers, but Apple could remedy that with this fall's iPhones. The company is believed to be preparing three models: 5.8- and 6.5-inch OLED devices, and a 6.1-inch LCD product. Both the 5.8- and 6.1-inch phones could slot below the $999 mark.
Comments
From what I remember Foxconn made products for other companies other than Apple. What happened? Did they bail after Apple was singled out?
So who will be their new scapegoat when they get busted for abusing workers again?