Foxconn, a foundry partner of Apple, released its second-quarter earnings report on Monday. The financial report showed that its profit fell for the second consecutive quarter. In the second quarter of June, Foxconn's net profit was NT$17.49 billion (US$5.6725 billion). The NT$17.9 billion in the same period of the year fell by about 2%. This is lower than the average estimate of NT$21.936 billion (US$7.1145 billion) by nine analysts in the Thomson Reuters I/B/E/S survey. Foxconn did not specify its benefits. .
Foxconn's weak performance underscores the prospect of a global smartphone market downturn before the traditional peak season in the second half of the year. Foxconn also pointed out that in the second half of this year, the global smartphone market is still relatively flat. Although the iPhone sales in the second quarter earnings report released by Apple were higher than before. Same period last year, but also lower than Wall Street's previous 50 million shipments. But other positive factors are more worthy of investors' attention, including an average price increase of 20% for each iPhone, reaching $724. This also indicates the second quarter. iPhone X sales are very strong.
Apple expects revenue to exceed analyst expectations this quarter. Foxconn manufactures electronic products including the iPhone for Apple OEM. Foxconn's factory will soon be running at full speed again, because Apple expects to release three models in September this year. The new iPhone, according to the report of Fubon Securities, Foxconn will be responsible for 100% of the 5.8-inch iPhone X, 90% of the 6.5-inch iPhone X Plus and 75% of the 6.1-inch iPhone 9 proportional order. The iPhone 9 will use the LCD display. The other two use the OLED display.
Although Foxconn has been trying to tear off the label of 'Apple's processing plant', it is understood that Foxconn's sales are all from Apple, and as of 2017, Foxconn's three largest sales orders are from Apple, so if If Apple changes its partner, or if the iPhone loses popularity, Foxconn will also be in trouble.
Earlier, it was reported that Foxconn still won the majority of Apple's new iPhone mobile phone OEM share this year. It is expected to reach 60 million units in the fourth quarter, and the total shipments in the first half of 2019 are expected to reach 183 million. unit.
In direct proportion to the shipments, the overtime hours of workers are also prolonged. In the workshop of Zhengzhou Foxconn, the workers are divided into two shifts every day, from 8 am to 8 pm, and from 8 pm to 8 am, production line And the machine does not stop for 24 hours. From the management of Foxconn to the grassroots workers, I hope that Apple's new products in the fall of 2018 can be sold better, because this will be directly linked to their wages.
Last month, Foxconn paid a one-time $295 bonus to its workers in the Zhengzhou factory. This also confirms that the factory needs to be produced around the clock after the release of the new iPhone in the future, ensuring that there are enough workers to complete the production task. .