“Hon Hai Precision Industry Co., the world’s biggest contract electronics maker, reported slower earnings growth in the second quarter as customers held off smartphone purchases in anticipation of a new Apple iPhone in the fall,” Lorraine Luk reports for The Wall Street Journal.
“The Taiwan-based iPhone assembler said net profit for the three months ended June 30 was up 27% from a year earlier, compared with growth of 56% in the first quarter and 33% in the fourth quarter of 2014,” Luk reports. “The slowdown reflects the challenge of depending on Apple for more than 50% of revenue. Hon Hai, also known by the trade name Foxconn Technology Group, has built and run large-scale manufacturing facilities for Apple’s products in China.”
“Hon Hai is also under increasing pressure to seek new growth drivers as Apple diversifies its suppliers,” Luk reports. “Hon Hai’s results mirror those of Apple, which last month reported a 38% rise in profit for the fiscal quarter ended June 27. iPhone sales fell short of elevated expectations, though, at 47.5 million units, compared with the previous quarter’s 61.2 million. In the fall Apple is expected to launch iPhones with ‘Force Touch’ technology that can distinguish between a light tap and deep press.”
Read more in the full article here.
MacDailyNews Take: Sequential growth slowing prior to Apple’s annual iPhone event, especially as Apple manages inventory appropriately ahead of the changeover, is wholly unsurprising.
This isn’t surprising, “…iPhone sales fell short of elevated expectations,….” There are many more companies experiencing this same slovenly analysis. Hey analcysts, it’s not the companies it’s you!
At least someone got this right for a change, instead of a stupid headline reading “iPHONE SALES CRASHING!”
You mean the stupendously predictable yearly anticipatory upgrade cycle every consumer knows about but Wall Street analysts who still fail to miss it, calling for doom ‘n gloom instead? Yes and as happened to tech companies since time immemorial? I wish we could vote analysts off the net for their sheer stupidity and manipulation.