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."

AustrianTribune Specials

A team of experts have discovered a new species of macaque in the Tibetan state of Modog and they are distinguishable from the other four kinds of macaque because of its penis. The new spcies is called Macacaleucogenys or the 'white-cheeked...