Foxconn's Hon Hai’s Q1 revenue falls, likely on weak iPhone 5 demand
In its earnings report released on Wednesday, Foxconn's Hon Hai Precision Industry said that its revenue for the first quarter had witnessed a 19.2 percent year-on-year decline; a fall which probably resulted from the weak iPhone 5 demand which affected the company's sales.
According to the figures released by the Taiwan-based contract manufacturer, the company's revenue for the 2013 first quarter was NT$809 billion; though its net profit for the quarter increased 8.4 percent year-over-year to reach NT$16.4 billion.
Commenting on the fall in Hon Hai's first-quarter revenue, Arthur Liao - an analyst with Fubon Securities Investment Services - said that the key reason behind the company's plunge in revenue was the fact that the sales of the Apple iPhone 5 during the reporting quarter had been disquietingly weak.
In addition, Liao also pointed out that the consumers have also been showing a greater interest in Apple's lower-cost iPad Mini tablet, as against the more profitable standard iPad.
Highlighting the fact that the popularity of the iPhone 5 - Apple's latest iPhone iteration - is apparently on the wane, Liao said that, in the second quarter, consumer demand will likely shift to competing handsets from Samsung, Nokia, and HTC; and added that, in his opinion, "Hon Hai's second quarter will be worse than the first quarter."