Foxconn’s risky reliance on just one customer – Apple – seems to be waning

“Over at Foxconn Industrial Internet Co., a smaller unit that recently went public in Shanghai, the dependence on iPhones is evident,” Tim Culpan writes for Bloomberg. “Its three largest single orders last year were from Apple, totaling $7.5 billion, for smartphone frames and outer casings.”

“Data from last year, and the first quarter of this year, show encouraging signs [Founder and Chairman of Foxconn Terry] Gou may be kicking the habit,” Culpan writes. “While revenue at iPhone assembler Hon Hai climbed 8 percent in 2017, orders from Apple grew just 1.8 percent, according to my calculations. In other words, other clients were contributing more to Foxconn’s top line.”

“Reliance on Apple isn’t over yet, though,” Culpan writes. “More than 51 percent of sales still came from Apple last year, down from 54.2 percent in 2016. Yet first-quarter 2018 figures point to an even bigger decline: Only 45 percent of revenue was due to its largest customer, the lowest for that period since at least 2013.”

Read more in the full article here.

MacDailyNews Take: Of course, in business and many other things, it’s best not to put all of your eggs in one basket.

10 Comments

  1. Just curious, why does MDN put 100% of its ad revenue in the Google basket?

    For those in the know, Foxconn assembles products for these customers and more:
    Acer
    Amazon
    Apple
    Asus
    Cisco
    Dell
    Hewlett-Packard
    Intel
    IBM
    Lenovo
    Logitech
    Microsoft
    MSI
    Netgear
    Nintendo
    Panasonic
    Philips
    Samsung
    Sharp
    Vizio

    etc

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