Foxconn Reports First Ever Revenue Decline – Said to be Due to “Lukewarm Demand” for iPhone 7

Posted in Apple News, Miscellaneous on 10/01/2017 by Chris Hauk

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Major Apple assembly partner Foxconn Technology Group has reported its first ever sales drop since the company went public in 1991. A report from Nikkei indicates “lukewarm demand” for the iPhone 7 and a “saturated smartphone market” are to blame for the company’s downturn.

Foxconn Reports First Ever Revenue Decline - Said to be Due to "Lukewarm Demand" for iPhone 7

MacRumors:

In total for 2016, Foxconn’s revenue of 4.356 trillion New Taiwan dollars (approximately $136 billion) was down 2.8 percent from its 2015 earnings. As a slight bright spot, its revenue for December grew 9.8 percent year-on-year because of increased user spending for the approaching Chinese New Year holidays, “and the relatively robust demand for the 5.5 inch iPhone 7 Plus model.”

Apple, which accounts for over 50% of Foxconn’s revenue, reported an overall revenue decline for 2016, spurred in part by the Cupertino firm’s first year-over-year decline in iPhone sales. Industry analyst Vincent Chen estimates that 207 million iPhones were shipped in 2016, down from 236 million in 2015.

Chen does expect a turnaround for Foxconn this year, as he sees the tech company’s revenue growing 5 to 10%, due to “healthier demand” for the upcoming 10th-anniversary “iPhone 8.” Chen believes a mild rebound in the PC market will also aid growth for Foxconn. He says 2017 iPhone shipments could rise to around 221 million.


Author

Chris Hauk

MacTrast Senior Editor, and self-described "magnificent bastard," Chris Hauk owns Phoenix Rising Services and writes for everyone's favorite "bad movie" website, Big Bad Drive-In.

His first Apple product was an iPod Classic 9 years ago, and he has since added a MacBook Pro, a number of iPads, iPhones, and multiple Apple TVs to his collection.

He lives somewhere in the deep Southern part of America. Yes, he has to pump in both sunshine and the Internet.