Apple's foundry partner Foxconn released its second-quarter earnings on Monday, and its earnings report showed that its profits fell for the second consecutive quarter. In the second quarter of June, Foxconn's net profit was NT$17.49 billion (US$5.6725 billion), down about 2% from NT$17.9 billion in the same period last year. This is lower than the average estimate of NT$21.936 billion (US$ 711.4 million) by nine analysts in the Thomson Reuters I/B/E/S survey. Foxconn did not elaborate on its benefits.
Foxconn's weak performance underscores the prospect of a downturn in the global smartphone market before the arrival of the traditional peak season in the second half of the year. Foxconn also pointed out that in the second half of this year, the global smartphone market is still relatively flat. Although iPhone sales in Apple’s second-quarter earnings report were higher than the same period last year, it was also lower than Wall Street’s previous forecast of 50 million shipments. But other positive factors are more worthy of investors' attention, including an average price increase of 20% for each iPhone, reaching $724. This also shows that the sales of iPhone X in the second quarter is very strong.
Apple expects revenue for the quarter to exceed analyst expectations. Foxconn manufactures electronic products including the iPhone for Apple OEM. Foxconn's factory will soon be running at full speed again, because Apple expects to release three new iPhones in September this year. According to Fubon Securities' report, Foxconn will be responsible for 100% of the 5.8-inch iPhone X, 90. % of the 6.5-inch iPhone X Plus and 75% of the 6.1-inch iPhone 9 ratio order. The iPhone 9 will use an LCD display, while the other two will use an OLED display.
Although Foxconn has been working hard to tear off the label of the "Apple OEM". However, it is understood that Foxconn's sales are all from Apple, and as of 2017, Foxconn's three largest sales orders are from Apple. It can be said that if Apple changes its partner, or if the iPhone loses popularity, Foxconn will follow suit. In trouble.
Earlier, it was reported that Foxconn still won the majority of Apple's new iPhone mobile phone OEM share this year. It is expected to reach 60 million units in the fourth quarter, and the total shipments in the first half of 2019 are expected to reach 1. 8.3 billion.
In direct proportion to shipments, workers' overtime hours are also prolonged. In the workshop of Zhengzhou Foxconn, the workers are divided into two shifts every day, from 8:00 to 8:00, and from 8:00 to 8:00, the production line and the machine are kept for 24 hours. From Foxconn's management to grassroots workers, they hope that Apple's new products in the fall of 2018 will sell better because it will be directly linked to their wages.
Last month, Foxconn paid a one-time $295 bonus to its workers in the Zhengzhou factory. This also confirms that the factory needs to be produced around the clock after the release of the new iPhone in the future, ensuring that there are enough workers to complete the production task. .