“Taiwan’s Foxconn, the world’s top contract electronics maker and an Apple supplier, posted surprisingly lower quarterly net profit on Monday, extending a downward streak to a second quarter in a row,” Reuters reports.
“The tepid results from Foxconn, formally known as Hon Hai Precision Industry Co Ltd, underline a muddy outlook for sales in a plateauing global smartphone market ahead of the traditionally busy second half of the year when new products are launched,” Reuters reports. “For the quarter ended June, Foxconn reported a net profit of T$17.49 billion ($567.25 million), versus T$17.9 billion a year ago. This was below a mean estimate of T$21.936 billion ($711.45 million) from nine analysts polled by Thomson Reuters I/B/E/S.”
Read more in the full article here.
MacDailyNews Take: Salvation is right around the corner.
“underline a muddy outlook for sales in a plateauing global smartphone market ahead of the traditionally busy second half of the year when new products are launched,”
We all knew the day would come. But yes MDN, salvation is right around the corner ..,
The smartphone market is as saturated as a soggy sponge. Apple has no worthwhile markets to grow into now that there’s only India, Africa and South America left. Those consumers aren’t going to be able to afford iPhones. Android will soon have about to 85% – 87% of the smartphone market. It’s really not encouraging for Apple in terms of gaining market share percentage and that’s all Wall Street is ever concerned about.
“Those consumers aren’t going to be able to afford iPhones. Android will soon have about to 85% – 87% of the smartphone market. It’s really not ”
So what? 90% of the world’s population can’t “afford” an iPhone, but a big portion of those “can’t afford” consumers get one anyway.
“It’s really not encouraging for Apple in terms of gaining market share percentage and that’s all Wall Street is ever concerned about.”
That must be why Apple has the world’s highest market capitalization.
Profitable first see Tesla…..
Apple isn’t Foxconn’s ONLY customer.
People are quick to blame Apple for any dip in its suppliers’ results, ignoring the fact that its suppliers also manufacture for Apple’s competitors.
The degree of Foxconn’s YoY profitability (down 2.3%) looks more like bad Galaxy S9 results.