Foxconn posts fall in first-quarter revenues as demand for smartphones falters
Apple supplier Foxconn has posted a sharp fall in profits and revenues for the first quarter amid declining demand for smartphones.
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The Taiwanese firm, which is the world’s largest contract manufacturer, reported revenues of T$1.05tn (£26bn) for the three months to the end of March, down more than 40 per cent from T$1.8tn in the fourth quarter.
Pre-tax profit was also slashed to T$30.5bn, compared to T$170bn in the previous three months. Shares in the firm, which is formally known as Hon Hai Precision Industry, fell just over one per cent following the trading update.
The disappointing results come amid a downturn in the global electronics industry as consumers have become less likely to fork out for new smartphone models.
Apple, which is Foxconn’s biggest customer, revealed sales of its flagship iPhone fell 17 per cent in the first quarter, as customers shun upgrades.
The results following a shock announcement by Foxconn chairman Terry Gou, who last month unveiled plans to run for president of Taiwan in 2020.
Gou said he will resign as chairman to concentrate on his presidential bid, and the firm last week published a list of new board nominees.
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Shareholders are set to vote on the nominees at a meeting in June, after which a new chairman can be selected.