Earnings are down at Hon Hai Precision Industry, the Taiwanese electronics manufacturing giant better known as Foxconn, leaving analysts wondering whether the slump bodes bad news for the company's biggest partner, Apple. Foxconn's revenues for the three months ending March 2013 were 808.97bn Taiwanese dollars ($26.99bn/£17.63bn …
Which one is it, reg?
There's been several articles on the reg recently about how idevices are totally overtaking the market, now you're saying that idevice sales are down (which we've known since september, when the aapl stock started crashing).
So now which one is it?
Re: Which one is it, reg?
^-^ He has a point.
Can Apple really be 60-70% of Foxconn's revenue??
They have 1.25 million employees, and assemble PCs for several major OEMs, they assemble PS3s, Xboxes, Kindles, various OEM's LCD TVs, wireless router for Cisco/Linksys, all sorts of stuff. I read somewhere last year that Foxconn has about 120,000 people assembling all of Apple's products. If they get 60-70% of their revenue from only 10% of their employees, Apple is getting screwed price-wise compared to everyone else :)
Given that IDC just reported a 14% drop in PC sales YoY, that looks like a likely candidate for at least some of Foxconn's pain.
Re: Can Apple really be 60-70% of Foxconn's revenue??
DougS' comment is on target.
With PC shipments falling off a cliff, why jump to blame iPads and iPhones?
Time to stop this idiocy and return to mini-SIMs (not micro- mind you). I hope falling profits will trigger some understanding and willingness to listen to customer needs on Apple's part
NO sim would be even better.
Apple would prefer no SIM at all, so service could be activated online. But meantime, they do what's best for the main customer (the carriers). Changing the SIM size helps to keep phone replacement and contract renewal tied together in a single transaction. And that tie is partly what makes iPhone the best phone for subscriber retention, and hence gets iPhone the biggest carrier subsidy.
Really? You think that people make Apple/non-Apple buying decisions based on the size of a SIM it accepts?? What planet are you from???
So Foxconn sales take a dip and it must be Apple - obviously... never mind the other people they manufacture for or the fact that it's the quarter after the Christmas quarter when demand is lower.
Let's think about this
I know people have short memories, but it's getting ridiculous. Consider the news we've seen from Hon Hai/Foxconn in the last quarter: they made big investments in infrastructure, building plants I'm Brazil and elsewhere. Pressured by Apple, they implemented new worker safety measures. And they gave workers a substantial raise, in response to complaints that they were underpaying. All these things cost money... lots of money.
So their revenue is down after they spent a bunch of money. That seems pretty straightforward, no? Well, no. Because whatever the facts, the tech journos' spin is that Apple (only one of Hon Hai's many big customers) is doomed. Apple is always doomed. Apple has been doomed for the past 38 years. Apple has been doomed as it rose to become the largest tech company in the world, as it went from zero revenue in mobile devices to two thirds of the entire mobile industry's profits in less than five years, as its iPad and MacBook Air products wiped out the netbook market, as it topped consumer satisfaction surveys for ten years in a row... aaahhh, what's the use? No matter how spectacularly it succeeds, everybody knows Apple is doomed.
Likewise, we get the headline "Foxconn's revenue down on slowing iPad, iPhone sales", even though buried in the article is the admission that "Cupertino didn't sell as many iPhones and iPads as investors were hoping for... despite the fact that overall sales had increased by double digits from the previous year's quarter." Let's parse that again: far from slowing, iPhone and iPad sales INCREASED SUBSTANTIALLY. But greedy investors had been hoping for even more... ergo Apple is doomed.
What is it about Apple that makes tech writers lose any semblance of common sense?
Re: Let's think about this
Yes! This is a more coherent version of my thoughts while reading the article.
What is going on? 8-(
How can it happen? Everybody I know would like to be a happy iPhone's owner... Every serious electronic company that I have heard about (and there are not so many), wants to be as successful as Apple is in customer's minds. The iProducts are not so cheap and, despite that fact, there are huge queues at Apple's shops whenever it announces a new product (the latest one, here in Brazil, is going to be the mini iPad).
And the price of Apple's share has dropped 38% !!! There is no safe place where you can to put your money if you plan to build a calm retirement...
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