'Foxconn' Articles

Foxconn's Profits Slide 31% as iPhone Sales Continue to Drop

Following in line with a slump in iPhone sales, Apple manufacturer Foxconn recently reported a 31 percent decline in profits in the second quarter of 2016. For the full quarter, ending in June, Foxconn was said to have amassed a net profit of 17.7 billion New Taiwan dollars, down from NT$25.7 billion a year earlier. Analysts watching the company had expected a revenue of around NT$23.9 billion for the quarter (via The Wall Street Journal). A doom and gloom sentiment began surrounding Apple, and its overseas manufacturers, soon after the Cupertino-based company reported its first quarterly sales decline since 2003 in April. Despite a strong presence of the iPhone SE in the market, iPhone sales continued to contribute to an overall revenue decline for the company as the year continued. The slump in the iPhone market now appears to be fully affecting Apple's manufacturing partners with the news out of Foxconn today, but both companies are looking forward to an uptick in sales in the future. Notably, Foxconn's acquisition of Japanese electronics maker Sharp has been officially approved by Chinese antitrust authorities, "clearing the final hurdle" in the lengthy buyout process. With the acquisition over, it should be easier for Foxconn to move forward with not only manufacturing of parts for the iPhone 7, but potentially even ramping up development of AMOLED displays and glass casings for the 2017 iPhone. Overall, weak demand for the iPhone 7 -- due to a "lack of innovation" -- was predicted by a group of Apple suppliers in May. Multiple companies, like Japan Display

Foxconn Developing Glass Casing and OLED Displays Ahead of Tenth-Anniversary iPhone

Taiwanese manufacturer Foxconn is developing glass casings and OLED displays for smartphones in an attempt to secure orders for the tenth-anniversary iPhone next year, according to Japanese website Nikkei. The report claims Foxconn has been developing glass chassis for at least one year, and developing its own OLED display technologies through its Sharp acquisition. It would be competing with Samsung, and China's Biel Crystal and Lens Technology, to win orders. KGI Securities analyst Ming-Chi Kuo said Apple will switch to non-aluminum casing, with glass being the most likely candidate, for the majority of new iPhone models in 2017. Kuo and multiple other sources also expect next year's iPhone to have a thinner and lighter OLED display in a move away from LCDs. Earlier reports said Samsung would be a primary supplier of OLED panels for future iPhones. Samsung's Galaxy S7 sets the benchmark for OLED-based smartphones, and makes a strong case for Apple's rumored shift towards the display technology. iPhones have used various LCD display technologies since the original model launched in 2007, but OLED panels are often thinner, brighter, and more energy efficient than their LCD counterparts. The technology, however, can be more expensive to produce. Apple's tenth-anniversary iPhone is shaping up to be a significant upgrade, compared to the relatively incremental refresh expected from this year's iPhone 7. The rumored switch to glass casing and OLED display will mark the first major overhaul of Apple's smartphone since the iPhone 6 launched in late 2014, given that

Apple Demanding Price Cuts From Suppliers Ahead of iPhone 7

Apple is demanding price cuts on components for the new iPhone from its overseas suppliers to maintain its high profit margins, despite a global slowdown in smartphone sales, according to Taiwanese website DigiTimes. The report claims several large Taiwan-based component suppliers such as Foxconn, Largan Precision, and Pegatron have already been affected, while strong competition in Greater China forcing the companies to "compete aggressively" over Apple's orders by cutting prices. Currently, Largan is facing strong competition from Japan-based Kantatsu over camera module orders, while Foxconn and Pegatron are seeing Apple adding new ODM partners such as Wistron for the production of its new iPhone.Apple is expected to announce the iPhone 7 series in September. The smartphones are expected to retain iPhone 6s-like designs with faster Apple A10 processors, dustproofing and waterproofing, repositioned antenna bands, and faster LTE and Wi-Fi. A dual-lens camera and 3GB of RAM may be exclusive to the 5.5-inch model. Other rumored features include a Smart Connector, stereo speakers, and a flush, touch-sensitive home button, but it is not entirely clear if each of those features are destined for the iPhone 7 or iPhone 7 Plus/Pro, no longer planned, or reserved for the alleged OLED-based iPhone with glass casing expected in

Apple Diversifies Suppliers for iPhone 7 Due in September

Apple will rely on multiple manufacturing partners to assemble the iPhone 7 and iPhone 7 Plus, including Foxconn, Pegatron, and Wistron, according to Taiwanese website DigiTimes. The new 4.7-inch model will reportedly be assembled by Foxconn and Pegatron, while the 5.5-inch model will be made by Foxconn and Wistron. Apple typically diversifies suppliers to aim for a smooth iPhone launch. "Wistron was a manufacturer of Apple's iPhone 5c and has already prepared sufficient capacity for the next-generation iPhone orders," the report adds. Wistron has also been tasked with iPhone SE orders. The report unsurprisingly confirms that Apple's next-generation flagship iPhones will launch at the end of the third quarter, setting the stage for a traditional September announcement and release, likely by no later than the third week of the month. DigiTimes has a mixed track record at reporting on Apple's upcoming product plans, but its sources within the upstream supply chain have proven reliable at times. Rumors suggest the iPhone 7 could retain a 6s-like design with a faster TSMC-built A10 chip, slightly larger battery, waterproofing and dustproofing, repositioned antenna bands, no headphone jack, faster Intel LTE chips, and more. Meanwhile, the larger iPhone 7 Plus (or Pro) could have a Smart Connector, dual-lens camera, and 3GB of RAM. Other rumors surrounding the next-generation smartphones have included a flush camera, touch-sensitive home button, stereo speakers, and wireless charging, but it remains possible that Apple dropped some of those features or chose to

Apple's Suppliers Projecting Weak Demand for iPhone 7 Due to 'Lack of Innovation'

Apple recently reported its first year-over-year decline in iPhone sales, with CEO Tim Cook claiming one of the reasons is that the upgrade cycle for the larger iPhone 6 and iPhone 6s series has stretched out longer than it anticipated. Despite the launch of the lower-priced iPhone SE, that decline is expected to continue into the second half of this year. In reporting its first negative-growth quarter since 2003, Apple forecasted another revenue drop next quarter. The sales decline is placing downward pressure on Apple's overseas suppliers, who have ridden the iPhone's coattails to success over the past half-dozen years. Not only does LCD supplier Japan Display reportedly expect to post a nearly $300 million loss for the fiscal year ended March, but Nikkei reports that Apple's slowdown is also sending Taiwanese suppliers into a downward spiral."Suppliers are saying that they are getting fewer orders for the second half of this year compared with the year-ago period," a source said. "The traditional peak season this year will not be able to compare to the past few years."The report claims Taiwanese Semiconductor Manufacturing Company (TSMC), one of Apple's primary chip suppliers, may ship up to 30% fewer chips in the second half of 2016 compared to the year-ago period. The decline is attributed to the iPhone 7's expected lack of innovative features, saturation of the smartphone market, increased competition, and a global economic slowdown.Another source said that for Taiwan Semiconductor Manufacturing Company, the sole supplier for the latest A10 chips used in iPhone

Foxconn Reportedly Close to Deal to Open iPhone Manufacturing Facility in India

Apple manufacturer Foxconn is close to signing a deal with the Indian government to open a manufacturing facility intended to make iPhones, reports ET Now (via AppleInsider). The project would cost $10 billion and be built on top of 1,200 acres of land in Maharashtra, India. While several other Indian states were in consideration for the plant, Foxconn chose Maharashtra, the third largest state in the country. The manufacturer hasn't yet picked a location for the facility in the state yet, but does have a couple options it's considering. Once the deal is done, ET Now reports it would take 18 months before the plant is operational. Last year, Maharashtra Industries Minister Subhash Desai revealed that Foxconn was scouting locations in the state for a manufacturing facility. Foxconn is reportedly looking to build 10 to 12 facilities in the country by 2020. The Taiwanese manufacturer has been looking to re-enter the Indian market after being forced to shut down production in the country once it lost Nokia as a client in 2014. India has increasingly become important to Apple's business, with the Cupertino company recently gaining approval to open its own retail stores in the country and announcing plans to open a $25 million facility focused on maps development in

Foxconn to Develop OLED Displays Following Sharp Takeover

Following multiple reports claiming Apple will release its first OLED-based iPhone as early as 2017, DigiTimes Research says that Apple manufacturer Foxconn will develop AMOLED displays through its recent investment in troubled Japanese electronics maker Sharp.Sharp will set up one 4.5G and two 6G AMOLED production lines with monthly capacity of 13,000, 11,500 and 34,500 glass substrates respectively, with total monthly capacity of 9.85 million 5.5-inch equivalent panels.Given its longstanding relationship with Apple, the move could position Foxconn as a frontrunner among AMOLED display suppliers for iPhones. Recent reports said Apple was closing in on deals with Samsung and LG, while AU Optronics and Japan Display are also rumored candidates for orders in 2017 or 2018. AU Optronics, Japan Display, LG, and Sharp have all supplied Apple with LCD displays for current or previous iPhones. Last month, oft-reliable KGI Securities analyst Ming-Chi Kuo said Apple is planning an all-new iPhone featuring a curved 5.8-inch AMOLED display for debut in 2017. Kuo noted that, if supplies are sufficient, Apple would launch a 4.7-inch LCD-based iPhone paired with the new 5.8-inch AMOLED iPhone as a Plus-sized model. While some have expressed skepticism about Apple releasing a larger 5.8-inch iPhone, one possibility is that the screen wraps around the sides of the device akin to Samsung's Galaxy S7 Edge. Apple holds patents for wraparound screens, and the design lines up nicely when applied to the height of a 5.5-inch iPhone. Rumors suggest that the iPhone 7 series will

Apple Supplier Foxconn Agrees to $3.5 Billion Takeover of Sharp

Apple's primary manufacturer Foxconn has reached an agreement to purchase troubled Japanese electronics maker Sharp for a revised 389 billion Japanese yen, or roughly $3.5 billion, according to The Wall Street Journal. The two companies had originally settled on an estimated $6.2 billion takeover last month, but Foxconn put the deal on hold after discovering that Sharp had hundreds of billion of yen in "previously undisclosed liabilities." The deal, which is expected to be finalized on Saturday, should strengthen Foxconn's position as both an electronics maker and assembler. Sharp has been one of Apple's main LCD display suppliers for iPhones and iPads in recent years. Foxconn has long been interested in producing displays, which are typically one of the most expensive components in iOS devices. The supplier entered into a strategic partnership with Sharp in 2012, but the deal was ultimately unsuccessful. Apple could soon be shifting away from LCD displays, however, as recent rumors claim it plans to release at least one OLED-based iPhone as early as 2017, with display panels sourced from some combination of Japan Display, LG, and/or Samsung.

Apple Supplier Foxconn to Acquire Sharp for $6.2 Billion [Updated]

In late January it was reported that Apple supplier Foxconn made a $5.3 billion bid to purchase Japanese electronics maker Sharp. Today, Sharp has decided to accept an updated $6.2 billion takeover offer from Foxconn, reports Nikkei Asian Review. Sharp intends to restructure its operations under the umbrella of Foxconn, although arrangements of the purchase have not yet been revealed. Sharp was facing either a buyout offer from Foxconn or support from the Innovation Network Corporation of Japan, a state-backed fund that offered a roughly $2.7 billion injection and a $1.8 billion credit line. Currently, Sharp supplies Apple with LCD displays for iPhones in addition to being a leading television maker and selling audio equipment, home appliances and more. The company has fallen on hard times recently, incurring a net loss of nearly $1.9 billion in the fiscal year ending March 2015. It also must repay $4.3 billion it had borrowed by March; Foxconn reportedly was willing to take on the debt. It's unclear what Foxconn's plans for Sharp are, but the company could sell Foxconn-made electronics under the Sharp brand. The acquisition's impact on Apple may only be near-term, as Apple is rumored to be turning to Japan Display, LG and Samsung for OLED displays in iPhones as early as 2018. Update: Shortly after the its acquisition of Sharp was announced, Foxconn put the deal on hold after "discovering previously undisclosed liabilities." Foxconn said it would not sign off on the deal until terms had been clarified. At issue is hundreds of billions of yen in liabilities

Apple Taps Second 'iPhone 5se' Supplier to Ensure Smooth Launch

Apple is adding Wistron as a supplier of the so-called "iPhone 5se," in addition to Foxconn Electronics (via DigiTimes). The latter will still lead production on the next-generation 4-inch iPhone, but Apple is ensuring that manufacturing goes as smoothly as possible by introducing a secondary supplier in Wistron. Apple has been trying to separate its orders to different ODMs to avoid risks. In February 2015, the vendor added Compal Electronics as an iPad mini manufacturer, and Wistron to conduct iPhone touch panel lamination, and has recently outsourced a small portion of its new 4-inch iPhone orders to Wistron, looking to nurture Wistron to become an iPhone assembly house, according to some market watchers. According to the report, the split in suppliers will also continue for the iPhone 7 and iPhone 7 Plus. Foxconn and Wistron will both supply the larger 5.5-inch iPhone 7 Plus, while Pegatron will share manufacturing duties with Foxconn for the 4.7-inch device. The most recent rumors regarding this fall's iPhone 7 largely encompass the potential loss of its 3.5mm headphone jack in place of Lightning-connected headphones. Apple sees the doubling-up of suppliers on one particular iPhone as a chance of lessening the manufacturing risk, such as faulty components. The company used the same strategy most recently in the iPhone 6s, divvying up production duties between Foxconn and Pegatron. On both versions of the 2016 iPhone, Foxconn will remain the "major supplier" for each device. More immediate rumors surround Apple's yet-to-be-announced March 15 media event

Apple Supplier Foxconn Makes $5.3 Billion Offer to Purchase Sharp

Apple supplier Foxconn has reportedly offered around $5.3 billion (¥625 billion) to purchase troubled Japanese electronics maker Sharp, according to The Wall Street Journal. The report claims that Sharp is also reviewing a competing offer from the Innovation Network Corporation of Japan (INCJ), possibly in the range of $2.5 billion (¥300 billion). INCJ already owns a controlling stake in Japan Display, a joint venture formed in 2012 by the display making divisions of Hitachi, Sony and Toshiba. Foxconn is reportedly willing to shoulder all of Sharp's debt in an effort to persuade the company's creditors. Sharp must repay around $4.3 billion (¥510 billion) it borrowed by March, urging the company and its lenders to reach a decision by February 4, when it reports its latest quarterly earnings results, according to the report. Sharp, which experienced a net loss of nearly $1.9 billion (¥222 billion) in the fiscal year ending March 2015, supplies Apple with LCD displays for current iPhones. The company is a leading television maker, and it also sells audio equipment, home appliances, interactive display systems for business use and more. Foxconn could begin selling its own line of electronics if it purchased Sharp, but exactly how it plans to use the company if taken over remains unknown. Any possible implications for Apple may be short lived, as Japan Display, LG and Samsung are rumored to supply the company with OLED displays for iPhones as early as 2018. In 2012, Foxconn chairman Terry Gou personally acquired a 38% stake in a Sharp display factory in Sakai,

12.9-Inch 'iPad Pro' Rumored to Launch After Mid-November as Foxconn Prepares Components

The oft-rumored 12.9-inch "iPad Pro" is expected to launch after mid-November as overseas manufacturer Foxconn prepares to start supplying components for the large-sized tablet in late September, according to the sometimes-reliable Taiwanese blog DigiTimes. Apple reportedly remains cautious about placing orders for the "iPad Pro" from suppliers due to declining iPad sales and weakening demand in the overall tablet market. 12.9-inch "iPad Pro" dummy model originally shared in February 2015 DigiTimes has a hit-and-miss track record reporting on Apple's upcoming product plans, so this latest rumor should be treated with a proverbial grain of salt. Nevertheless, the rumor is consistent with previous reports that widely expect the "iPad Pro" to launch in the second half of this year. Apple has also historically announced new iPad models in October, which could line up with a launch around mid-November. Last month, Taiwanese iOS developer Hiraku Wang shared iOS 9 beta code that suggests the 12.9-inch "iPad Pro" could have a 2,732×2,048 display at 264 PPI, the same pixel density as the third-generation iPad through iPad Air 2. iPhone developer Steven Troughton-Smith also discovered that the new iPad keyboard on iOS 9 beta is capable of scaling to a larger size with rearranged keys, providing further evidence that Apple could be planning to release a larger-sized tablet in the near future. UIKeyboard view on iOS 9 scales to a larger iPad size (Image: Twitter/Steve T-S) The pro-level tablet is also rumored to feature a 12.9-inch flexible display with increased pressure

Apple to Order Record-Breaking 85-90 Million Force Touch-Equipped 'iPhone 6s' Models

Apple is asking suppliers to assemble a record-breaking 85 to 90 million units of its next-generation iPhone models combined by year-end, according to The Wall Street Journal. That order tops the reported 70 to 80 million iPhone 6 and iPhone 6 Plus units that Apple ordered during its initial production run last year. The report reiterates rumors that the so-called "iPhone 6s" and "iPhone 6s Plus" will feature both Force Touch, which can distinguish between a light tap and deep press, and a new color option, likely rose gold or pink. Foxconn and Pegatron are expected to be the main suppliers of the next-generation iPhones, while Apple may elect to use a third assembler Wistron to help fulfill the record-breaking number of orders. The next-generation iPhones will reportedly enter mass-production starting next month and are expected to retain the same 4.7-inch and 5.5-inch screen sizes and current display resolutions. The "iPhone 6s" and "iPhone 6s Plus" are widely expected to be announced in September with a focus on non-cosmetic improvements such as an A9 processor with 2GB of RAM, Force Touch, faster Qualcomm LTE chip and improved 12-megapixel rear-facing camera.

'iPhone 6s' Again Rumored to Feature 12MP Camera With 4K Video Recording

A sketchy and unconfirmed internal document posted by an alleged Foxconn employee on Chinese microblogging website Weibo (via PhoneArena) corroborates rumors that the next-generation iPhone could feature a 12-megapixel rear-facing camera with 4K video recording and 240 FPS slow-motion capabilities. Weibo user KJuma has since removed the pair of leaked documents he shared on the Twitter-like service, but not before the images began making their rounds on the web. The documents also corroborate multiple rumors claiming the so-called iPhone 6s ("N66") and iPhone 6s Plus ("N71") will have 2GB of RAM. KGI Securities analyst Ming-Chi Kuo, who has a respectable track record at reporting on Apple's upcoming product plans, issued a note to investors in May with eleven predictions for the next iPhone, and a 12-megapixel rear-facing camera sensor and A9 processor with 2GB of RAM were among the new features he

Foxconn Exploring Locations for iPhone and iPad Manufacturing Facilities in India

Apple manufacturing partner Foxconn plans to travel to India and explore possible locations to reopen production facilities in the country, in a move that could bring iPhone assembly and potentially lower prices to the emerging market. Reuters reports that Foxconn could benefit from lower production costs in India as wages continue to increase in China, where the majority of its operations are currently based. "Foxconn is sending a delegation of their officers to scout for locations in a month's time," Subhash Desai, Industries Minister of India's western state Maharashtra, told Reuters. The report claims Foxconn plans to build 10-12 facilities in India, such as factories and data centers, by 2020, although the Taiwan-based company has not provided any further details about its plans. The return of Foxconn would provide an economic boost for India, which continues to rival neighboring China in the technology sector. The manufacturing company was forced to close shop in India last year after losing client Nokia, but now eyes a return to the country with plans to manufacture iPhones, iPads and iPods. "A return of Foxconn -- which was forced to shut up shop in India last year after client Nokia closed -- would be a major victory for India, which badly needs to turn its tech boom into a manufacturing and employment boost. India, under Prime Minister Narendra Modi, has sought to reboot manufacturing, but the country is yet to rival China, particularly in technology where most factories will likely be assembly units to begin with."Foxconn assembles iPhones, iPads and

Apple Could Unveil Next iPhones in August, Launch to Follow in September

KGI Securities analyst Ming-Chi Kuo, who has a respectable track record at reporting on Apple's upcoming product plans, has issued a research note to clients that claims Apple will announce its next iPhones in August ahead of a September launch. Apple has never unveiled an iPhone in August, having introduced early iPhone models at or around WWDC in June, the iPhone 4s in October 2011 and all subsequent iPhone models in September. It is worth noting that Kuo has sometimes been off with his launch timing predictions in the past. The research note, a copy of which was first obtained by The China Post, also claims that Foxconn is expected to secure between 60% to 70% of orders to assemble the new iPhones. Kuo notes that Foxconn has a higher yield rate for iPhones, helping it secure the majority of orders, and adds that the Taiwanese manufacturing company will also serve as the sole assembler of the much-rumored 12.9-inch iPad. Kuo previously predicted that the main selling point of the next iPhones will be Force Touch, the pressure-sensitive display technology built into Apple Watch and new MacBook trackpads. His other predicted features for the next iPhones, many of which have already been rumored, include an A9 processor with 2GB of RAM, improved 12-megapixel camera, a new Rose Gold color option, improved Touch ID recognition, gesture control support, a new microphone added near the speaker and

Foxconn to Cut Workforce as Apple Expected to Announce Record-Breaking iPhone Sales [Updated]

Foxconn Technology Group, Apple's main assembly partner for iPhones, today announced (via Reuters) major plans to reduce its workforce due to "declining revenue growth and rising wages in China." The announcement comes mere hours before Apple's financial earnings announcement for the first fiscal quarter of 2015, in which the company is expected to announce record iPhone sales. The company doubled its labor costs in recent years following a few public scandals involving worker suicides and poor working conditions, while revenue growth has slowed. After a decade of steady increases following the explosion of popularity for smartphones and tablet devices, mostly thanks to the manufacturing of Apple products, Foxconn hasn't faced the issue of diminishing returns until now. "We've basically stabilized (our workforce) in the last three years," Woo said. When asked if the company plans to reduce overall headcount, he responded "yes". Revenue growth at the conglomerate tumbled to 1.3 percent in 2013 and only partially recovered to 6.5 percent last year after a long string of double-digit increases from 2003 to 2012.Today's news comes on the heels of reports indicating Apple likely sold more iPhones in China than the U.S. in the last quarter, and expectations the iPhone will have record sales coming off the launch of the iPhone 6 and 6 Plus. Foxconn's job cuts have not been specifically tied to its Apple business, but Apple is a major customer and hiring patterns do generally follow the iPhone product cycle, which should begin to slow a bit follow the rush of customers