Hon Hai Electronics’ Sees 19% Profit Decline Due To Weak iPhone Demand
Roshan Ashraf Shaikh / 4 years ago
Hon Hai Precision Industry Co. saw a disappointing and unexpected decline for the Apple’s iPhone in the first quarter of 2013. The reports show that there’s a 19% decline of iPhone sales in comparison with Q1 2012. Hon Hai’s 60-70% revenue is depended on iPhone and iPad’s sales. There if Apple, Inc. cannot push or introduce their product to bring their demand of their products back to how it was before, Hon Hai and Apple, Inc. will be facing huge profit decline on a quarterly basis.
Its also reported by IDC that iPad shipments will be down to 46% in 2013, in comparison with 51% as on 2012.
The demand for Apple iPhone and iPad are declining in the smartphone and tablet market because of Android’s popularity and demand. It is reported that in the tablet market, Android devices are currently enjoying a share of 49% in 2013, in comparison with 42% share in 2012.
Apple, Inc. is having a hard time to maintain its consistency of sales and even that reflected on company’s shares as the prices fell down from $102.10 in September to $426.98 at the time of writing. Apple, Inc is facing a lot of competition from Samsung alone as the Korean giant is not only pushing its android powered devices, but also Samsung is set to compete with Apple in Wearable device race.
It should be noted that Microsoft is desperately trolling Google’s Android using the “Scroogle” ad campaign, however at this point its uncertain if it will work for Microsoft or not.
Hon Hai posted their sales earning of ($1 = 30.0010 Taiwan dollars) T$808.87 Billion for Q1 2013, which is a significant drop from their Q4 2012 reports which indicated that the company earned T$988.34 Billion and a decline of T$1 Trillion in comparison with Q1 2012.
What would Apple, Inc. do to pull their consumers attention?
Source: Daily Tech