iPhone Manufacturers Report Losses As iPhone Sales Slide
According to the Nikkei Asian Review, iPhone manufacturer Foxconn have posted their first ever annual sales decline.
The company posted revenues of approximately $136.38 billion USD, a drop of 2.81% from 2015.
The decline has been attributed to the reduced demand from Apple, for iPhones and a broader saturation of the smartphone market.
Apple is Foxconn’s no.1 client and accounts for more than 50% of its revenue. Unfortunately for them, reports last month indicated that Apple was looking to trim the production of iPhones by about 10% as a result of sluggish sales for both new and aging models.
Notably, they aren’t the only iPhone manufacturer experiencing a downturn. Pegatron, also involved in the assembly of last year’s iPhone 7, posted a 27.43% drop in year-on-year revenue for December.
Analysts (and Apple stockholders) are hopeful than an injection of innovation with this year’s iPhone 8 will help Apple rally the company’s financial fortunes.
The iPhone 8 is believed to offer a flexible OLED display with a bezel-free design and an all-glass casing.
However, many are still skeptical.
“There’s no question Apple’s best days are behind it,” said Bernstein analyst Toni Sacconaghi earlier this year.