Taiwan’s Foxconn posted its first fall in quarterly net profit in more than two years, on Wednesday, as the main assembler of Apple’s iPhones felt the effects of a maturing smartphone market and slower global tech demand.
Foxconn’s 6.7 per cent fall in fourth-quarter net profit came as it announced the takeover of ailing Japanese electronics maker Sharp Corp, which analysts expect will depress earnings for two to three years. Foxconn, formally known as Hon Hai Precision Industry Co, booked T$52.9 billion (US$1.6 billion) in net income on a 4.7 per cent drop in revenue in the October-December period, from a year earlier, it said in a statement.
Analysts noted prior to the results that the company had managed to improve production efficiency and benefit from higher average selling prices for large-screen iPhones.
For all of last year, net profit reached T$146.9 billion, up over 12 per cent to a record annual high.