Saturday, August 12, 2017

Foxconn Quarterly Income Report Disappointing

Foxconn
Based on the latest three-month earnings report before the launch of Apple iPhone 8, Foxconn disappointed investors and professionals, with earnings lower than the profit forecast for the second quarter of this year.

Foxconn is a trusted manufacture to assemble a variety of devices, although the Phone Arena assessed, no one has matched the popularity of the Apple iPhone. Speculation is growing that the iPhone marking its tenth anniversary is a premium model, and has undergone mass production process at Foxconn factory.


For the quarter ending in June, Foxconn reported net income of US $ 589 million. The revenue is 25 percent lower, compared with analyst expectations of $ 781.5 million.

This is also part of the reason for the decline that occurs due to the dynamics in the smartphone market.

Meanwhile, the number of smartphones distributed in the same quarter increased by three percent, most of which came from Chinese manufacturers such as Huawei and Oppo, which are assembled in their own factory.

Foxconn is currently reportedly trying to make savings by utilizing the help of robots on assembly lines. Foxconn also began expanding its product assembly line to PCs to video games, while Apple dominates revenue from half of Foxconn's main assembly line.


A number of information circulating calling the process of assembling the iPhone 8 is more complicated when compared with previous models, will negatively impact on the next quarterly report Foxconn. Through its social media, one of Foxconn's executives said the OLED panel of supplier suppliers sent 60 percent of the panels, rated enough to meet Apple's desired standards. 

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