Foxconn Posts Its First Ever Annual Sales Decline Due to 'Lukewarm Demand' for iPhone [Chart]

Foxconn has posted its first ever annual sales decline since going public due to lukewarm demand from Apple and a saturated smartphone market, reports Nikkei.

For 2016, Foxconn posted revenues of 4.356 trillion New Taiwan dollars ($136.38 billion), down 2.81% from a year ago. The company's December revenue, however, grew 9.76% year-on-year to NT$449.63 billion thanks to orders for the approaching Chinese New Year holidays and the relatively robust demand for the 5.5 inch iPhone 7 Plus model.

Pegatron who assembles the iPhone 7 model, posted a 27.43% drop in December revenues year over year to NT$84 billion.


Nikkei says that Foxconn's unprecedented sales drop was largely caused by Apple's first revenue fall since 2001. Apple accounts for over 50% of Foxconn's revenue. Analyst Vincent Chen of Yuanta Investment Consulting predicts that 2016 iPhone shipments will have fallen from 236 million to 207 million.

"Look forward to 2017, we think Foxconn's revenue could grow by 5% to 10%," said Chen. The growth drivers for the current year will come from healthier demand for the next iPhone 8 and a mild rebound in the PC market, according to Chen.

More details in the full report linked below...

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