Foxconn’s profits see largest drop since recession as iPhone X production stalls

手机数码 The Verge (源链)

Foxconn’s profits fell to $700 million last quarter, a 39 percent year-over-year decline from the $1.09 billion it pulled in during last year’s third quarter. It’s the Taiwanese assembler’s largest drop since the global recession, and it’s all due to the initial iPhone X production problems, as Foxconn relies on Apple for more than half of its business.

As first reported by
Bloomberg

,
Foxconn, the sole assembler of iPhone X devices, was unable to assemble as many iPhone X phones as it needed to stay profitable due to a lack of parts. Not enough suppliers make OLED displays
, and many struggled with the technical process of constructing the Face ID unit. Earlier last month, defective units from faulty Face ID parts sparked iPhone X production reports that Apple would only ship 20 million units
, or half of what was planned.

Making iPhone X devices caused Foxconn’s operating expenses to rise over 16 percent in Q3. And the easier-to-assemble iPhone 8 and iPhone 8 Plus modelshaven’t sold as well. Additionally, on the Asia front, Apple faces competition from companies like Huawei and Vivo
, which produce cheaper, iPhone-like alternatives.

But there is hope yet for Foxconn, as people are still clamoring to buy the iPhone X. Currently, the iPhone X is backordered up to four weeks,
according to 9to5Mac

.
Once those orders are filled, Foxconn may be able to recover from its low profit margins.

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