TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Huge Group to acquire what was Virgin Mobile in South Africa

      6 July 2022

      TechCentral needs your help – 2022 reader survey now live

      6 July 2022

      Call for ‘energy emergency’ to end load shedding

      6 July 2022

      What South Africa can learn from India’s IT boom

      6 July 2022

      Where to next for Dimension Data

      5 July 2022
    • World

      China accuses US of ‘technological terrorism’

      6 July 2022

      Scientists at Cern observe three ‘exotic’ new particles

      6 July 2022

      Bitcoin’s first African adopter plans own digital currency

      6 July 2022

      Bitcoin hints at a bottom – but it may be different this time

      5 July 2022

      China, US war of words erupts over lunar missions

      5 July 2022
    • In-depth

      The bonfire of the NFTs

      5 July 2022

      The NFT party is over

      30 June 2022

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022
    • Podcasts

      Demystifying the complexity of AI – fact vs fiction

      6 July 2022

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022
    • Opinion

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»Consumer electronics»iPhone maker Foxconn’s profits gutted by smartphone slump

    iPhone maker Foxconn’s profits gutted by smartphone slump

    Consumer electronics By Agency Staff15 May 2020
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Hon Hai Precision Industry’s profit plunged by the most on record after the coronavirus disrupted its China production and walloped global smartphone demand.

    Apple’s most important manufacturing partner recorded an 89% decline in net income to NT$2.1-billion (US$70-million) in the first three months of 2020. Revenue slid almost 12% to NT$929.7-billion, according to Bloomberg News’s calculations based on previously reported monthly sales numbers.

    The earnings decline drove home to extent to which Covid-19 and the resultant global lockdown has chilled electronics demand and driven up costs for upstream producers like Hon Hai that had to adapt to supply-chain disruption. Global shipments of smartphones fell at their fastest rate on record in the first quarter, hitting the assembler’s sales even though its main production facilities managed to return to full seasonal staffing levels around mid-March.

    Production at many of Apple’s Asian partners ground to a halt after efforts to curb the spread of Covid-19 kicked in

    On Friday, Hon Hai, known also as Foxconn, said it incurred costs related to the pandemic of NT$10-billion, though some of that will be compensated by the Chinese government. It added it had put the worst of the slump behind it and revenue should recover to double-digit sequential growth this quarter. But the company, which gets half its sales making iPhones and devices for Apple, warned smartphone demand remained uncertain.

    Production at many of Apple’s Asian partners ground to a halt after efforts to curb the spread of Covid-19 kicked in. That resulted in severe shipping delays for devices and led to component supply bottlenecks. Consumers also sheltered at home, hammering retail sales. At one point, Apple closed all 42 retail outlets in China, a critical market for the company, followed by store closures in other countries. While shops in China have reopened, most of its international ones have not.

    Delayed

    Covid-19 has also delayed product development and launches. Apple’s four upcoming redesigned iPhones with 5G will come out several weeks later than usual — but still within the northern hemisphere autumn window. In May, Apple failed to provide a forecast for the first time in more than a decade.

    Foxconn has already slashed its 2020 revenue projections in the wake of the pandemic. It told investors in April that it still has time to help Apple launch new iPhones in time for the holidays, but cautioned the schedule could be disrupted if the pandemic persists.  — Reported by Debby Wu, (c) 2020 Bloomberg LP

    Apple Foxconn top
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleJabu Mabuza to chair Net1 board
    Next Article Helios Towers to acquire 65 high sites in South Africa

    Related Posts

    Huge Group to acquire what was Virgin Mobile in South Africa

    6 July 2022

    TechCentral needs your help – 2022 reader survey now live

    6 July 2022

    China accuses US of ‘technological terrorism’

    6 July 2022
    Add A Comment

    Comments are closed.

    Promoted

    Hot Ink certifies and diversifies to maintain competitive printing edge

    5 July 2022

    Increased flexibility with Dell Precision Mobile Workstations

    5 July 2022

    The 5 secrets of customer experience in the cloud era

    5 July 2022
    Opinion

    South Africa can no longer rely on Eskom alone

    4 July 2022

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.