This Han Chinese Rat
living in Taiwan wants to run for President so he can sell Taiwan to the other
ravenous Rats in Ratland China! STOP THE MOTHERFUCKER!
Foxconn, the electronics manufacturer, reported a 17.7 per cent year-on-year drop in profits in the first quarter after several months of weak smartphone growth. The Taipei-listed company said net profit was NT$19.82bn (£492m) for the first three months of 2019, below a consensus estimate of NT$25bn from analysts polled by Refinitiv. Foxconn, whose chairman Terry Gou has said he wants to run for Taiwan’s presidency, did not explain what had led to the dip. Many of the Taiwanese companies that dominate the global electronics supply chain are suffering from waning consumer demand. TSMC, the world’s largest contract chipmaker, posted a 32 per cent annual fall in first-quarter profits, blaming slowing smartphone sales.
Foxconn, the electronics manufacturer, reported a 17.7 per cent year-on-year drop in profits in the first quarter after several months of weak smartphone growth. The Taipei-listed company said net profit was NT$19.82bn (£492m) for the first three months of 2019, below a consensus estimate of NT$25bn from analysts polled by Refinitiv. Foxconn, whose chairman Terry Gou has said he wants to run for Taiwan’s presidency, did not explain what had led to the dip. Many of the Taiwanese companies that dominate the global electronics supply chain are suffering from waning consumer demand. TSMC, the world’s largest contract chipmaker, posted a 32 per cent annual fall in first-quarter profits, blaming slowing smartphone sales.
But Foxconn is hit harder than most because as the largest
assembler of the iPhone it is overly dependent on revenue from Apple, whose
smartphones have struggled, especially in China. Sales for the three months to
March, though, rose 2.5 per cent from the same period a year earlier. But the
company’s operating margin shrank from 3.55 per cent in the fourth quarter of
last year to 1.5 per cent in the first quarter of 2019.
Driven by the
US-China trade war, rising labour costs and diminishing investment incentives
in China, many electronics hardware makers are expanding production capacity in
south-east Asia and India instead of China. Although Foxconn is ramping up
capacity in India and looking at Vietnam, analysts said the group had less
leeway to relocate operations away from China because of its heavy dependence
on iPhones.
While the devices of
some rival brands are assembled by glueing, many parts of the iPhone need to be
put together with tiny screws, an operation that robots are largely unable to
perform. No other country can offer the hundreds of thousands of migrant
workers Foxconn uses to run its factories in China. This iPhone-induced heavy
reliance on human labour and on China was taking a toll on profitability,
analysts said. Foxconn said on Friday it planned to restructure its board
of directors to include seven new members. Mr Gou and Lu Fang-ming, deputy
chairman and head of Asia-Pacific Telecom, would retain their seats.
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