Taiwan's Foxconn, the world's largest contract electronics manufacturer, has reported a worse than expected 39 percent decline in quarterly profit, hit by production issues involving Apple Inc's new iPhone X. Silvia Antonioli reports.
This, is the most profitable gadget in history... ...not so profitable this quarter though for its biggest manufacturer. Shares in Apple products assembler Foxconn tumbled as it posted a 39-percent dive in quarterly profit This was its biggest drop since the global financial crisis At 700-million-dollars, earnings were less than half of what analysts had forecast and that is a pretty big miss. The Taiwanese company, known formally as Hon Hai Precision Industry, is the sole manufacturer of the 10th anniversary version of the iPhone and also produces most other iPhones. It said margins were squeezed by production bottlenecks for the iPhone X. (SOUNDBITE) (English); DARREN SINDEN, MARKET ANALYST, PEPPERSTONE, SAYING: "Foxconn is priced for future growth. And what's happened here is quite simply this The Apple iPhone was a bit of a damp squib for 10 has seen issues in terms of getting it into production. I think probably the truth is that Apple rushed out with 10 and passed all the issues associated with that onto Foxconn." Suppliers of parts for the iPhone X have struggled with specifications for new features like facial recognition and edge-to-edge display But Apple says demand for the handset is red-hot especially ahead of the holiday season so Foxconn's Christmas present might just be a speedy recovery in profit Many analysts though think it might be spring before Apple manages to feed the world's hunger for iPhones.