Wednesday, January 11, 2017

IPhone could be to blame for Foxconn falls


Among the various rumors of plans to move to the United States, lower production of the iPhone and the expansion of Apple to India, today Foxconn announces that saw the first drop in sales in 2016 since it went public by first time in 1991 . The decline that the company has suffered has been blamed on high demand from Apple, which is its most important customer, according to Nikkei.

In 2016 the figures achieved by Foxconn stood at 136.38 billion dollars, 2.81% less than in 2015 . For the company, Apple accounts for more than 50% of profits.

The first signs of tiredness

Foxconn
On the other hand, the month of December represented Foxconn benefits, showing a growth of 9.76% year after year thanks to the Chinese New Year, and also to the high demand that has suffered the iPhone 7 Plus.

Investors and analysts have managed to ensure that Foxconn's decline is to blame for Apple's underperformance in 2016. Analyst Vincent Chen stressed that while in 2016 both Apple and Foxconn saw their first falls in more than 15 years, the picture seemed to be cleaner thanks to both the next iPhone in August . According to Chen, 2017 could lead to growth of 5% to 10% for Foxconn.

Possible move

Foxconn Factory in India
Recently, in a press release, the founder of Foxconn Terry GOU announced that, despite rumors of a possible move to the United States, the company will remain in China . However, Gou did not deny the possibility of increasing its presence in the United States.
Apple's underperformance has not gone unnoticed by anyone either, as analysts and investors have been clamoring for an urgent change, but the company continues to endure the siege. Multiple reports coming out in 2016 claimed that Apple was decreasing production of its iPhone, but it was not until a few weeks ago that a report said that Cupertino would be cut by 10% the production of its smartphone in 2017 . Even Tim Cook suffered a reduction of 1.5 billion dollars in their pay due to failure of Apple in achieving the 2016 target.

IPhone 8 redesign rumored screen
None of the companies - Foxconn and Apple - seems to be having a good time. However, they have the opportunity to repair the mistakes of previous years in the newly started 2017 . Could the iPhone 8 be the piece that the company needs?
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