iPhone assembler Foxconn reports a 40% drop in profits; probably not due to Apple

iPhone assembler Foxconn has reported profits of T$17.49B ($567M) for the second quarter of the year. That represents a 40% drop from the same quarter last year …

Reuters reports that it was also below analyst expectations.

That compares with T$17.9 billion in the year ago period and was below a mean estimate of T$21.936 billion from 9 analysts polled by Thomson Reuters I/B/E/S.

While Apple is a major client, it seems unlikely that iPhone production was to blame. Apple recently reported sales of 41.3M iPhones for the quarter, marginally up on the 41M in sold in the same quarter in 2017.

Foxconn is a contract manufacturer for a number of brands, and has more recently branched out into making its own products, though buying-in established brand names to market them. Foxconn recently acquired Belkin, which gave the company ownership of the Belkin, Linksys and Wemo brands. It is also selling complete turn-key smart factories to other manufacturers.

Foxconn has, however, seen Apple turn to Wistron for its Made In India iPhones.

Photo: WSJ

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