14 DAY TRIAL // Foxconn has posted disappointing quarterly earnings caused mainly by declining interest in Apple’s iPhone. The pressure is on for Apple to roll out a new version that delivers more than just incremental changes.
Reuters has it on file from KGI Securities that “Hon Hai's sales totaled T$808.97 billion ($26.96 billion), down from T$988.34 billion in the fourth quarter and T$1 trillion in the first quarter last year.”
Analyst Ming-chi Kuo working with the investment firm says, “A quarterly decline was expected, but not a yearly decline.”
Knowing that over half of Hon Hai’s revenue comes from doing business with Apple, Kuo draws a rather logical conclusion: “This shows that Hon Hai's revenue depends too much on Apple, and iPhone orders corrected more than expected,” he says.
Apple is feeling immense pressure from analysts, the media, and customers alike to release a revolutionary something, not necessarily the next iPhone, to regain its momentum among the top dogs in the tech industry.