Foxconn’s third quarter revenue slides beneath estimates after iPhone X manufacturing hurdles

TAIPEI (Reuters) – Taiwan’s Foxconn (2317.TW), the world’s largest contract electronics producer, noticed quarterly revenue slide 39 p.c – a consequence far beneath estimates and extensively attributed to manufacturing points for Apple Inc’s (AAPL.O) iPhone X.

The emblem of Foxconn, the buying and selling identify of Hon Hai Precision Business, is seen on prime of the corporate’s headquarters in New Taipei Metropolis, Taiwan June 12, 2017. REUTERS/Eason Lam

Whereas buyers have flooded into shops this month to purchase Apple’s 10th anniversary model of its premium smartphone, the product has confronted a string of manufacturing hurdles centered on new applied sciences and options.

Questions stay as as to whether Apple can meet demand for the iPhone X through the essential vacation quarter, with most analysts saying it should seemingly take it till subsequent yr or early spring to take action.

Foxconn, formally generally known as Hon Hai Precision Business Co, mentioned third-quarter internet revenue tumbled to T$21 billion ($700 million), some 42 p.c beneath a mean estimate of seven analysts polled by Thomson Reuters I/B/E/S. Income for the quarter was flat.

FILE PHOTO: Foxconn’s pc motherboards are seen through the annual Computex pc exhibition in Taipei, Taiwan June 1, 2016. REUTERS/Tyrone Siu/File Photograph

Shares in Foxconn fell 2.four p.c in early Wednesday commerce, underperforming the broader Taiwan market which was down zero.5 p.c.

Apple, nonetheless, reported better-than-expected earnings earlier this month and provided a rosy forecast for the vacation buying season.

“I feel within the fourth quarter we anticipate to see a restoration (for Foxconn) as a result of utilization will get higher given the iPhone ramp-up,” mentioned Daiwa analyst Kylie Huang.

“So November/December ought to be higher however nonetheless can be impacted general within the fourth quarter.”

Apple mentioned it offered 46.7 million iPhones within the quarter ended Sept. 30, above analysts’ estimates of 46.four million, in line with monetary knowledge and analytics agency FactSet.

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

Our Requirements:The Thomson Reuters Trust Principles.

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