According to Bloomberg reported Beijing November 14, Foxconn parent company Hon Hai Precision today released third-quarter results in 2017. In the technical failure of the tenth anniversary of Apple's delayed version of iPhone X production, Hon Hai third-quarter profit Accidental decline.
Earnings reports, as of the third quarter of September, Hon Hai's net profit of NT 21 billion (about 696 million), down 39% from NT 34.6 billion a year earlier, less than market expectations. , Hon Hai third quarter net profit of 372 billion NT. Hon Hai third quarter revenue of NT 1.08 trillion yuan, with the same period last year.
Apple's use of the technically demanding face-scan sensor for the iPhone X initially caused trouble for some of its suppliers and hindered Hon Hai's production, and Apple reportedly struggled to produce enough iPhone X to meet important holidays Quarter of the market demand, because the company lacks the ability to produce OLED screen for its suppliers.
The growth in market share of Chinese smartphone makers, such as Huawei and vivo, has also affected Hon Hai's performance as many Chinese companies are making their own mobile phones despite the report released by market research firm Counterpoint that shipments of global smartphones in the third quarter An increase of 5% over the same period of last year, but was mainly driven by the demand for cheap machines in emerging markets.
David Hsu and Raymond Hsu, analysts at Taiwan's CRA, said in a pre-Hon Hon report that the increased competition and the search for alternative assemblers endanger Hon Hai's In the near term, Hon Hai's takeover attempt is another concern as the company is also trying to acquire Toshiba's memory chip unit recently.
'More and more signs that Hon Hai's attempt to implement a large-scale takeover transaction may also hurt the balance sheet,' said the two analysts.
However, as Apple resolves issues in the supply chain, the iPhone X should be a key driver of Hon Hai's profit growth, and Apple expects the iPhone X to help it hit its record high of $ 87 billion in holiday sales.
Hon Hai is getting out of pure business model, this business was experiencing rising costs and margins beset by the meager Hon Hai founder Gou is installing robots within the factory in order to achieve automated production, offset the rising labor costs in the Mainland. The main production base in the sea, Gou visited the United States on many occasions and signed an agreement to establish a $ 10 billion LCD panel plant in Wisconsin, while Hon Hai also seeks to acquire production orders for the healthcare, automotive and artificial intelligence sectors.
As of today's close, Hon Hai shares fell 0.9%, erasing this year's gains.