Hon Hai takes hit from slowing iPhone sales
account for a small slice of the latter’s business.
“There is an urgent need for Hon Hai to diversify its revenue sources. We expect shipments of iPhones to decline by 13 percent in 2016,” Peng said.
Although Apple will see a stronger sales momentum this year, with a shipment of 211.7 million units of iPhones, it will still be far less than the 231.5 million units in 2015, Canalys forecast.
But Xiang Ligang, a smartphone expert and CEO of the telecoms industry website cctime.com, noticed a bright spot in Hon Hai’s financial report.
“In the quarter ended in December, sales were up 9.76 percent year-on-year, signaling big demand for the iPhone 7 Plus,” Xiang said.
“It is too early to predict how Hon Hai and Apple will perform in 2017, because this year marks the 10th anniversary of the iPhone and Apple may unveil a cutting-edge product to revive its sales,” he added.
Workers at the production line at a Foxconn Technology Group complex in Shenzhen, Guangdong province.