Foxconn Sales Down In Q1 2013 Following ‘Disappointing’ iPhone Demand



Foxconn sales declined 19% during the first quarter of 2013, and “disappointing” demand for Apple’s iPhone is getting the blame, Reuters reports. Between January and March, the company’s sales totaled NT$808.97 billion ($26.96 billion), down from NT$988.24 billion ($32.99 billion) in the fourth quarter of 2012, and NT$1 trillion ($33.38 billion) a year ago.

“A quarterly decline was expected, but not a yearly decline,” said KGI Securities analyst Ming-chi Kuo. “This shows that Hon Hai’s revenue depends too much on Apple, and iPhone orders corrected more than expected.”

Kuo expects Foxconn to post flat sales in the second quarter of 2013, and he expects the company’s net profit to come under pressure during the first half of this year.

Foxconn gets 60-70% of its revenue from Apple, assembling the Cupertino company’s hugely popular Macs and iOS devices. But some analysts feel Apple’s sales are beginning to disappoint, with revenue forecasts missed in the December quarter, thanks to “disappointing holiday sales.”

Some feel Apple needs to launch a low-cost iPhone to counter the increasing threat from rivals like Samsung, who offer a range of devices catered to different sections of the market. Others believe that the company just needs something completely newlike the Apple television or the iWatch.

Apple is expected to launch the iPhone 5S this summer, according to recent reports, with new iPads scheduled for this fall. Some reports have also claimed the iWatch may launch before the end of 2013, and that a low-cost iPhone may debut as well.

Source: Reuters

  • DrM47145

    HOW THE FUCK can they say “disappointing”? Demand -therefore, profit- just can’t keep on growing exponentially. Everything reaches a plateau.

    Come on! Between January and March, the company’s sales totaled US$26.96 billion!!!! BILLION!!! Ok, they were US$33.38 billion a year ago, AND SO FUCKING WHAT?!?!?!?! That only means you are reaching a plateau!

    Poor Foxconn, and shame on Apple… I guess it sucks to have plateaued at having such revenue and saturated the market, huh?

    Why can’t they just put things in fucking perspective, just a little bit!

  • calmasacow

    Apple’s sales are beginning to disappoint, with revenue forecasts missed in the December quarter, thanks to “disappointing holiday sales.”

    Yeah well maybe if Foxconn had been able to keep up the sales would have been better most people weren’t willing to wait a damn month for a iPhone 5. I mean crap there were still shortages in January. If anything it is Foxconns productivity “or lack there of” that is hurting Apples sales. people are sick of going to buy the stuff and being told that it is gonna be a month or more before it arrives.

    Apple should buy that piss-ant Phone company with the iPhone name in Brazil and use their factories to start making some of the stuff down there since Foxconn can’t seem to keep up.