iPhone 5 decreasing demand leads to Foxconn losses

News 09:18, 15 May 2013

Foxconn has reported its Q1 revenues are down, probably due to the iPhone 5's dropping demand

The dropping demand for the iPhone has led to a drop in Foxconn's profits.

According to PC World, Foxconn's Hon Hai precision has announced a 19.2 per cent year-on-year decline in profits and an analyst said this was probably due to demand for the iPhone 5 not being as high as previous iPhone iterations.

Hon Hai's revenue for the quarter stood at NT$809 billion (£18 billion), although net profit was up 8.4 per cent year on year.

Analyst Arthur Liao said consumers are opting to buy the iPad Mini rather than the more expensive (and of course profitable) iPad.

He added, 'I also believe (Hon Hai’s) second quarter will be worse than the first quarter.'

The interest in the iPhone is starting to decrease around the hype of the iPhone 6 and new Google device, such as the Nexus 5 and even the Samsung Galaxy S4.

Apple is not the most original brand around, keeping its formula pretty much the same with every iPhone launch.

Apple's iPad and iPhone manufacturing business accounts for up to 50 per cent of Foxconn's revenue, some analysts are predicting, so it's vitally important the company continues its contract with the iPhone-maker.

Whether it's the iPhone 5S or iPhone 6 launched this year, Foxconn could sure do with a big product launch to help boost its products and prevent a further decline in the months to come.