iPhone X even bad impact on Foxconn, why?

Foxconn financial fate arguably very dependent on Apple, which always entrust their assembly of gadgets at the Taiwanese manufacturer. If th...



Foxconn financial fate arguably very dependent on Apple, which always entrust their assembly of gadgets at the Taiwanese manufacturer. If there is a problem that occurs on Apple-made phones, it will also affect the Foxconn.

That's what's happening to Foxconn, whose profit dropped 39% to $ 700 million in the last quarter. Whereas in the same quarter the previous year they recorded a profit of USD 1.09 billion.

For Foxconn this is the biggest decline since the global recession, and it was caused by the iPhone X who experienced problems at the beginning of its production period, as quoted from The Verge, Wednesday (15/11/2017).

The problem is when Foxconn can not assemble the iPhone X in large numbers, which is sufficient amount for them can still reap the benefits. But it is difficult to achieve, because there are several factors that affect.

These factors are the limited supply of OLED panels and the technical difficulties of Face ID sensor production on the iPhone X. The Face ID issue also makes the number of iPhone X supplies decrease by half, only 20 million units due to the number of fault ID units damaged.

Assembling the iPhone X also made Foxconn's operating expenditure increase by 16% in Q3 last because of its high difficulty level. While the iPhone 8 and 8 Plus are more easily assembled it turns out not too good sales, which also can not help Foxconn.

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