Taiwan's Hon Hai quarter profit falls on iPhone X costs

November 14, 2017

Taiwanese tech giant Foxconn said Tuesday its third-quarter profit dropped by more than a third, dragged by costs associated with producing the latest iPhone model.

Also known as Hon Hai, the firm is the world's biggest contract electronics maker and assembles Apple's iPhones.

Its net income in July-September fell 39.3 percent from a year earlier to Tw$21 billion ($696 million), lower than the Tw$37.2 billion estimate compiled by Bloomberg.

Revenue in the third quarter only increased a marginal 0.33 percent to Tw$1.08 trillion, according to a Hon Hai statement Tuesday.

Analysts say that the quarter's profit took a hit due to the costs of producing the iPhone X, Apple's most expensive flagship device.

The new gadget—which marks the 10th anniversary of the first iPhone release—went on sale earlier this month with long queues at Apple stores around the globe.

Hon Hai's fourth-quarter results should improve on sales of the iPhone X, which appears to be strong so far, analysts say.

The firm's billionaire founder Terry Gou—known for his aggressive dealmaking—has been snapping up investments from Japan to India as a bid to diversify from simply being an assembler of electronics.

It acquired troubled electronic giant Sharp last year to gain its cutting-edge LCD screen technology despite having to absorb the Japanese firm's huge losses and debts.

In July, Foxconn announced a $10 billion investment to build a plant in Wisconsin, a move praised by US President Donald Trump.

Gou said then the firm will continue to invest in other US states.

He attempted to bid for Toshiba's memory chip unit but was rebuffed when the Japanese firm said in September it signed an agreement to sell to a consortium led by US investor Bain Capital and includes Apple.

Explore further: Hon Hai's Q4 net profit dips as smatphone demand slows

Related Stories

Taiwan's Foxconn says Toshiba deal 'not over'

June 22, 2017

The head of Taiwan's tech giant Foxconn said Thursday its pursuit of Toshiba "is not yet over", a day after the Japanese firm announced it preferred another group of bidders to acquire its prized chip business.

Taiwan's Hon Hai net profit up 1.5% in third quarter

November 14, 2013

Taiwan tech giant Hon Hai Precision said Thursday net profit rose a better than expected 1.5 percent in the three months to September, although the earnings were weighed by the later release of Apple's latest iPhones.

Taiwan's TSMC sees profit boost from iPhone 7

October 13, 2016

Apple's new iPhone 7 series gave Taiwan microchip giant Taiwan Semiconductor Manufacturing Co (TSMC) a boost Thursday as the firm announced profits were up by almost a third compared with last year.

Recommended for you

AI and 5G in focus at top mobile fair

February 24, 2018

Phone makers will seek to entice new buyers with better cameras and bigger screens at the world's biggest mobile fair starting Monday in Spain after a year of flat smartphone sales.

Google Assistant adds more languages in global push

February 23, 2018

Google said Friday its digital assistant software would be available in more than 30 languages by the end of the years as it steps up its artificial intelligence efforts against Amazon and others.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.