“‘FIH’s fundamentals remain lackluster due to a lower-than-expected sales contribution from new customers (Amazon/Apple) and increasing low-margin orders from China smartphone customers (Xiaomi/Huawei),’ Dale Gai, an analyst at Barclays Research, said in a report before the earnings release,” Yee reports. “FIH also said it planned to change its name to FIH Mobile Ltd to avoid confusion with its unlisted parent Foxconn Technology Group.”
Yee reports, “The name change is subject to approval by shareholders and authorities in the Cayman Islands, where the company is incorporated. FIH, which traditionally assembles products for clients including Nokia Oyj and Huawei Technologies Co Ltd, has struggled in recent years as many of its customers’ order books have shrunk. Analysts have said the company had begun taking some Apple Inc orders from parent Foxconn Technology Group’s flagship unit Hon Hai Precision Industry Co Ltd, though the contribution to its bottom line is so far limited.”
Read more in the full article here.
5 Day Most Commented