Foxconn Sales Down as Apple's iPhone Sales Disappoint
Hon Hai Precision Industry, more commonly know by it's trade name Foxconn, the main manufacturer of Apple products, posted a 19 percent decline in sales in the first quarter compared with a year earlier, hurt by disappointing demand for the iPhone.
From January to March, Hon Hai's sales totaled T$808.97 billion ($26.96 billion), down from T$988.34 billion in the fourth quarter and T$1 trillion in the first quarter last year.
"A quarterly decline was expected, but not a yearly decline," said KGI Securities analyst Ming-chi Kuo. "This shows that Hon Hai's revenue depends too much on Apple, and iPhone orders corrected more than expected."
(Read More: Foxconn Keeps Growing in Apple's Shadow)
Kao expected the Taiwanese contract manufacturer to post flat sales in the second quarter compared with the first, adding that its net profit is also likely to come under pressure in the first half of this year.
Hon Hai draws an estimated 60 to 70 percent of its revenue assembling Apple's iPhones and iPads, and carrying out other work for the California-based company.
Apple missed Wall Street's revenue forecast for the December quarter. Disappointing holiday sales reinforced fears it is losing its dominance in smartphones.
Shares in Hon Hai edged up 0.12 percent on Wednesday, versus a 0.31 rise in broader market