Profit Narrows for iPhone Assembler Foxconn -- WSJ
May 15 2019 - 3:02AM
Dow Jones News
By Yoko Kubota
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (May 15, 2019).
BEIJING -- Foxconn Technology Group's profit fell nearly 18% in
the first quarter as its biggest customer, Apple Inc., is
experiencing an accelerated decline in sales of the iPhone.
Taiwan-based Foxconn said Tuesday its profit in the latest
period was 19.83 billion new Taiwan dollars (US$637 million), lower
than the NT$23.05 billion average estimate of analysts polled by
FactSet and a year-earlier profit of NT$24.08 billion.
Foxconn's first-quarter revenue rose 2.5% from a year earlier to
NT$1.054 trillion.
The company, known formally as Hon Hai Precision Industry Co.,
is the world's largest contract electronics maker and assembles
Apple's iPhones among other products. It relies on Apple for about
half of its revenue, according to analysts' estimates.
Apple said sales of the iPhone, long the biggest driver of its
business, fell 17% for the three months through March 30. Demand
for the product has been hobbled by smartphone owners holding on to
devices longer and by competition from Chinese rivals offering
lower-price handsets that are still rich in features.
In the latest headache for Apple, smartphones could be among
products from China hit by a new round of U.S. tariffs potentially
coming as early as this summer.
Foxconn doesn't hold earnings calls or briefings.
The company on Friday released a list of board nominees
following last month's announcement by its chairman, Terry Gou,
that he wanted to run for president of Taiwan.
The directors slate includes Mr. Gou; Young Liu, who heads
Foxconn's semiconductor business; Fang-Ming Lu, a current board
member and the chairman of Asia Pacific Telecom Co.; J.W. Tai, the
president of Foxconn subsidiary Sharp Corp.; and Sung-Ching Lu, the
chairman of Foxconn Interconnect Technology Ltd.
The nominations will be put to a vote at an annual shareholders
meeting scheduled for June 21. Once a new board is approved, it
will choose a chairman, a company spokesman said.
Write to Yoko Kubota at yoko.kubota@wsj.com
(END) Dow Jones Newswires
May 15, 2019 02:47 ET (06:47 GMT)
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