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Foxconn, The Owner Of Sharp & Belkin Wobble As iPhone Sales Crash

Foxconn the Company that acquired Belkin, owns Sharp and is a major supplier to Apple has seen net profits fall by 12.6% after sales of iPhones fell.

The Taiwanese Company are the world’s largest electronics contract manufacturer who reported a US$2.0 billion profit which was down on the prior year.

The company reported unaudited consolidated revenue of NT$265.633 billion for February 2019, down by 35.85% MoM and down by 4.39% YoY.

Revenue rose 4.6% to NT$1.81 trillion from NT$1.73 trillion.

Foxconn relies on Apple for about half of its revenue, according to analyst estimates, there was no mention on the performance of Belkin and Sharp.

Foxconn Interconnect Technology acquired Belkin last year, which also owns the brands Linksys and Wemo.

Belkin, based in California, is known today for creating an array of computer and phone accessories, including wireless chargers, laptop docks, and phone cases.

Belkin purchased Linksys, which was well known for its home routers, in 2013. And it’s been running a smart home system called Wemo for more than five years.

Foxconn, which is listed on Taiwan’s stock exchange, doesn’t hold investor calls or briefings on its earnings and didn’t comment Friday on its performance.

The manufacturer’s profit drop comes after Apple flagged its struggling iPhone business earlier this year. In January, the company unexpectedly slashed its quarterly revenue forecast for the first time in more than 15 years, prompted by a downturn in iPhone sales in China. Apple then reported that for the three months ended Dec. 29, revenue dropped 4.5% while sales of the iPhone fell 15%. Apple’s total sales in China fell 27% during the same period.

As the drop-off in iPhone revenue pinched Apple, thousands of Foxconn workers late last year voluntarily left plants in mainland China after overtime hours were cut, people familiar with the matter have said. Foxconn has said it regularly reviews staffing levels, which fluctuate depending on seasonality, customer needs and other factors.

In recent years, Foxconn Chairman Terry Gou has worked to expand the company’s business beyond contract manufacturing, trying to build its own consumer brands as well as moving into new areas such as semiconductors.

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