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  • Apple Supplier Foxconn Cuts Costs to Deal With Weaker Demand

    According to a recent report, Apple’s main supplier, Hon Hai, which is better known as Foxconn, appears to be cutting costs to cope with weaker demand. The folks over at Bloomberg noted that the company’s margin for the quarter was 7.2%, which is higher than an analyst consensus of 7%. Net income was also slightly above expectations, up 27% to NT$25.7 billion or $798 million. Analyst predictions averaged NT$25.2 billion (which is roughly $783 million).

    For those of you who didn’t know, both the Chinese economy and the overall smartphone market appear to be slowing down, making it likely that Foxconn ended up using cutbacks in an effort to keep their profits high.

    The company ends up pulling a large chunk of its revenue from Apple, mainly through the production of the iPhone. Although the Cupertino California company set new internal records from the quarter, with 47.5 million iPhones, sold, the numbers were below an average forecast of 48.8 million. Some analysts had been anticipating as much as 50 million at the time.

    As of right now, Foxconn and Pegatron are believed to be resuming their roles as Apple’s main manufacturers for the next round of iPhones. The next-gen iPhone is expected to be announced around September 9, we’ll have to see what ends up happening.

    Source: Bloomberg
    This article was originally published in forum thread: Apple Supplier Foxconn Cuts Costs to Deal With Weaker Demand started by Akshay Masand View original post
    Comments 1 Comment
    1. quidam_brujah's Avatar
      quidam_brujah -
      ...because 'cutting costs' never means screwing workers...