Few along the Apple logistics chain are escaping the ripple effect from slumping iPhone sales. The iPhone assembler Foxconn Technology Group reported disappointing net profits for Q2 that were below analysts’ expectations.
A saturated iPhone market, stalled sales as consumers anticipate the latest iPhone model, and competition from Samsung Electronics, which produces cheaper products manufactured in China, has put a stop to Apple’s year-on-year growth in the last two quarters. Companies relying on Apple’s profitability are already seeing their bottom lines suffer. Foxconn is adopting a long-term perspective by investing in new technologies and cutting costs at its latest acquisition, Sharp. Foxconn assumed ownership of three-quarters of Sharp in a deal announced in March.
Here are the numbers:
$764 million | The net profit predicted by analysts for Foxconn
$566 million | Foxconn’s net profit; down from $822 million a year ago
37.1% | The percentage drop in operating income
31.1% | The percentage decline in Foxconn’s net profits compared to a year ago
5.2% | The percentage drop in Foxconn’s sales