Foxconn’s quarterly revenue slides 39 p.c amid cargo woes

TAIPEI (Reuters) – Taiwan’s Foxconn (2317.TW), the world’s largest contract electronics producer and a significant Apple provider (AAPL.O), posted a 39 p.c drop in third-quarter earnings as a result of later-than-expected product shipments.

The brand of Foxconn, the buying and selling title of Hon Hai Precision Trade, is seen on high of the corporate’s headquarters in New Taipei Metropolis, Taiwan June 12, 2017. REUTERS/Eason Lam

The iPhone X, Apple’s extremely anticipated smartphone product, went on sale on Nov. three, after going through a string of manufacturing points centered on new applied sciences and options on the system.

Foxconn, formally often called Hon Hai Precision Trade Co, mentioned third-quarter earnings got here in at T$21.03 billion ($698 million), in contrast with T$34.64 billion a yr earlier, whereas income for the quarter was flat.

However this month, buyers flooded into Apple shops internationally to purchase the brand new iPhone X, signalling stronger demand for the 10th anniversary model of the premium smartphone than the final two iterations.

Analysts had expressed concern that provide points would possibly cease Apple satisfying early demand.

Apple suppliers are weak to manufacturing glitches which have hit shares of corporations corresponding to Foxconn when bottlenecks emerge.

The U.S. tech large has, nonetheless, reported better-than-expected earnings earlier this month and supplied a rosy forecast for the vacation purchasing season, allaying investor considerations about manufacturing delays.

Apple mentioned it offered 46.7 million iPhones within the fourth quarter ended Sept. 30, above analysts’ estimates of 46.four million, based on monetary information and analytics agency FactSet. Nevertheless, common promoting costs of $618 fell in need of forecasts of $638.

Analysts have been desperate to see whether or not Apple can meet demand for the iPhone X in the course of the essential vacation quarter, with most saying it would doubtless take it till subsequent yr or early spring to take action.

Reporting by Jess Macy Yu; Modifying by Anne Marie Roanrtree and Edwina Gibbs

Our Requirements:The Thomson Reuters Trust Principles.

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