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IPhone maker's hardship despite record income

With Apple's recent $ 1 trillion rating, it would be a wonderful time to be Apple's supplier. However, according to the new quarterly settlement announced by Apple's longtime manufacturer Foxconn, it is not entirely true.

As revealed by Foxconn's latest financial revenue, consolidated revenue increased 17% year-over-year and reached the record high of $ 34.43 billion in the second quarter. Unfortunately, net income for the quarter declined 2.18% from the same period last year to the lowest level in five years.

The gross margin was the lowest level since the same period in 2012, but the operating margin declined to the lowest level since January of the same year.

Foxconn did not comment on overwhelming profit performance, but shares fell 2.44% prior to the announcement of the quarterly settlement of accounts.

Apple accounts for approximately 50% of Foxconn's revenue. However, although Apple has been blown out in 2018, most of its growth is growing due to the growth of service departments and other devices such as AirPod and Apple Watch. IPhone shipments, which are more directly related to Foxconn's revenue, have increased by only 1% in a year.

Vincent Chen, director of regional research team at Yuanta Investment Consulting, says: "Apple's achievements are gradually deviating from Taiwanese suppliers.

Necessity of reform

Things never come too soon. This year may eventually be the iPhone super cycle that Apple wanted, but it also instructs suppliers to reduce parts to 20% to suppliers compared to a year ago.

We will negotiate your own deals for screw-like components to save money by other Apple initiatives –

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