“Foxconn Technology Group posted a 39% drop in quarterly net profit amid production challenges dogging its largest customer — Apple Inc. — over the new iPhone X,” Yoko Kubota reports for The Wall Street Journal.
“Taiwan-based Foxconn, known formally as Hon Hai Precision Industry Co., posted 21 billion New Taiwan dollars (about $695.5 million) in net profit in the three months to September, its statement showed Tuesday,” Kubota reports. “That was lower than the NT$35.6 billion average estimate of analysts polled by the S&P Global Market Intelligence.
Quarterly revenue was NT$1.1 trillion, nearly flat from a year before.”
“Suppliers and contract electronics makers that rely heavily on Apple are often hit when production bottlenecks emerge in Apple products,” Kubota reports. “Pegatron Corp., which assembles the iPhone 8, said last week that its quarterly net profit fell 32.4%, which analysts attributed to components shortage and labor issues.”
Read more in the full article here.
MacDailyNews Take: So, then profits are right around the corner for Foxconn.
Additionally, readers have been telling us of having their iPhone X shipping dates moved up, so it looks production is ramping nicely now.