Foxconn Subsidiary Reports $226.07 Million Net Loss for Jan-June 2012
August 28, 2012 4:15 PM
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This is the worst first-half loss it has posted since listing in 2005
Foxconn Technology Group
subsidiary reported its worst first-half net loss ever this year, mainly due to a slowing global economy.
Foxconn International Holdings Ltd. (FIH), a Foxconn Technology Group subsidiary, posted a net loss of $226.07 million for the first half of 2012 (January through June). This is a massive jump from a year previous, which was a $17.65 million loss for the same time period. This is also the worst loss reported for the first half of a year for FIH since it started posting in 2005. FIH has had first-half losses for four consecutive years now.
, the cause for the huge loss was "the European and global economic slowdown." FIH is a contract maker of cell phones that is responsible for tier 2 mobile phone devices, such as Nokia, HTC and LG Electronics.
"Looking forward, challenging economic conditions around the world may continue to cast uncertainties in our business environment," said FIH. "The management team remains cautious over the future handset market conditions in 2012."
FIH added that it would look to control costs from here on out by increasing automation in the production line, for instance.
FIH may soon get at least a small boost, however, when
Windows 8 launches October 26
. Nokia, which works with FIH to create hardware devices, is the largest Windows Phone maker and will have many Windows Phone 8 options upon the operating system's release.
In addition, Nokia and Microsoft just received a huge boost in the smartphone realm. Just last week, a U.S. jury decided that
Samsung copied Apple's iPhone and iPad patents
for its own devices. Samsung was ordered to pay Apple $1.05 billion in damages, and will likely have some of its products banned in the U.S.
So what does this mean for Nokia and Microsoft? With Android's largest hardware maker largely out of the picture (if even temporarily), that allows
Nokia and Microsoft to squeeze into the mobile phone race
. Android is currently the top used smartphone OS, and without its key hardware components from Samsung, Nokia will likely receive increased business, which in turn could positively affect FIH.
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Yet another reason smartphones will cost more
8/28/2012 7:20:34 PM
Besides the Apple "thermonuclear" legal war, this is likely yet another reason why we'll soon be seeing more pricey smartphones in the near future.
RE: Yet another reason smartphones will cost more
8/28/2012 8:41:22 PM
Yup. This just in, apple reported am unusual extra profit this first half of $226.07 million.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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