Foxconn Profit Slumps Along With iPhone Sales
August 11 2016 - 12:30PM
Dow Jones News
BEIJING—Foxconn Technology Group reported a 31% decline in
second-quarter net profit, as iPhone sales have slumped in a
maturing market.
The Taiwanese electronics contract manufacturer, a major
supplier for Apple Inc., said its net profit in the period fell to
17.7 billion New Taiwan dollars (US$566 million) from NT$25.7
billion a year earlier.
Analysts expected a profit of NT$23.9 billion, according to an
average estimate by Thomson One Analytics.
Foxconn, whose official name is Hon Hai Precision Industry Co.,
said its consolidated revenue fell 5.2% to NT$922 billion from
NT$972.7 billion a year earlier.
Foxconn also said it had received Chinese regulatory approval
for its acquisition of Japanese electronics maker Sharp.
After years of rapid growth, Apple posted a decline in profits
in its last two quarterly results, as iPhone sales are crimped by
competition from Chinese brands and growing market saturation.
Foxconn's results for the quarter ended in June didn't include
its acquisition of struggling Japanese electronics maker Sharp
Corp.
Unlike most major listed companies, Foxconn doesn't hold
quarterly earnings conferences or give earnings guidance. But at
its annual shareholder meeting in June, Foxconn Chairman Terry Gou
said the company faced a tough business environment and was focused
on investing in next-generation technologies and streamlining
operations at Sharp to make the Japanese firm profitable.
Write to Eva Dou at eva.dou@wsj.com
(END) Dow Jones Newswires
August 11, 2016 12:15 ET (16:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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