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 and Taiwanese Semiconductor Manufacturing Company, reported fears of both huge net profit declines and a worrisome decrease in chip orders thanks to an overall declining iPhone market. Still, Apple CEO Tim Cook is optimistic about iPhone sales moving forward, saying that he sees "so many signs that are positive" as the company moves towards the iPhone 7 and iOS 10 in the fall.
Popular Stories
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
Apple’s iCloud Private Relay service is down for some users, according to Apple’s System Status page. Apple says that the iCloud Private Relay service may be slow or unavailable. The outage started at 2:34 p.m. Eastern Time, but it does not appear to be affecting all iCloud users. Some impacted users are unable to browse the web without turning iCloud Private Relay off, while others are...