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Foxconn revenue drops

by on11 January 2019

Cost of Apple dependence

Taiwan’s Foxconn reported an eight percent fall in its December revenue on Thursday presumably due to the failure of its key customer Apple to convince people to pay a third more for technology they pretty much already owned.

Foxconn said in a stock exchange filing that revenue fell 8.3 percent to $20.12 billion in December. It is its first year-on-year monthly revenue dip since February.

The revenue performance for December compared to consolidated revenue last year, which then represented a 50 percent year-on-year rise.

“The main reason is that the fall for consumer category products was rather big”,  a company representative told reporters, explaining the reason for December’s revenue dip.

Foxconn said 2018 sales increased 12.5 percent compared to 2017.

Warning signs about the health of the electronics sector have lingered in recent weeks, with Apple cutting its first quarter revenue forecast and attributing its iPhone revenue shortfall primarily to Greater China.

On Wednesday, the Nikkei Asian Review reported Apple had reduced planned production for its three new iPhone models by about 10 percent for the January-March quarter.

Foxconn’s chairman Terry Gou said last year the spat between China and the United States was the biggest challenge facing the company.

Last modified on 11 January 2019
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