Foxconn predicts 19% sales drop due to declining iPhone demand

According to a report in Reuters Hon Hai Precision Technology -mainly known as Foxconn to general users, have seen a 19% drop in sales during the first quarter of 2013. Top analysts are attributing the demand for the Apple iPhone as the main reason.

foxconn_predicts_19_percent_sales_drop_due_to_declining_iPhone_demand

The data says that Foxconn sales dipped to $26.96 billion in the first quarter, down from nearly $33 billion in Q4 of 2012, and $33.3 billion in the same quarter the previous year.

KGI Securities analyst Ming-chi Kuo says that the decline is not surprising as Q1 reports conventionally always look worse than Q4 reports that have holiday sales included. He also told the real telling figure is that Foxconn’s year to year revenue is in the decline and that

shows that Hon Hai’s revenue depends too much on Apple, and iPhone orders corrected more than expected.

Apple shareholders do not appear to seem to be very concerned with this news. This is reflected from their stock, which remained flat after the Foxconn report was released.

 

Source: http://www.reuters.com/article/2013/04/10/us-honhai-sales-idUSBRE9390B020130410

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