Hon Hai Posts Disappointing Q1 Earnings Due to Weaker iPhone Demand
April 10, 2013 9:17 AM
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Hon Hai reported a 19 percent sales decline for Q1 2013 compared to Q1 2012
Hon Hai Precision Industry Co. saw an unexpected yearly decline in the first quarter of 2013 thanks to shrinking demand for Apple's iPhone. Hon Hai reported a 19 percent sales decline for Q1 2013 compared to Q1 2012. While analysts were expecting quarterly decline from Q4 2012, they didn't see the yearly decline coming.
Hon Hai posted sales earnings of T$808.87 billion ($26.96 billion USD) for the quarter ended March 2013. This was a drop from T$988.34 billion in Q4 2012 and a further decline from T$1 trillion in Q1 2012.
Hon Hai, which collects about 60 to 70 percent of its revenue from the iPhone and iPad, saw a decrease in sales due to low demand for the iPhone in particular.
Apple has hard a
hard time keeping up the momentum
of its products, and it shows in the company's shares. Shares have fallen from $702.10 in September to $426.98 as of today. Also, Apple's iPhone only represented about 19 percent of worldwide smartphone shipments in 2012 while all Android-powered smartphones accounted for about 70 percent.
Android will even beat Apple in the tablet sector
this year, according to a new report from IDC. IPad shipments are expected to make up 46 percent of the tablet market for 2013, down from 51 percent in 2012. Android-powered tablets are expected to increase their market share to 49 percent in 2013, up from 42 percent in 2012.
Samsung is a particularly strong competitor to Apple as far as Android-powered devices go. We even saw a bit of fear in Apple as Phil Schiller (Apple's senior vice president of worldwide marketing)
talked trash about Android
on the eve of the Samsung Galaxy S IV release.
Samsung is even racing Apple to make a wearable device this year -- much like
a smart watch
-- and has plans to trump
Apple's new spaceship campus
with a more impressive headquarters in the U.S.
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RE: Lack of Apple innovation
4/10/2013 6:41:44 PM
So no answer to my question about where the issue of market share lies on your imaginary spectrum of permissible discussion topics. Fairly typical.
I think you pretend to struggle with the fairly straightforward notion that the things like revenue, sales, growth, profits and market share are proxy indicators of trends in the tech industries. Like all proxies they have to be used carefully and appropriately but they are useful in trying to work out how tech markets and the tech sector is evolving. Proxy indicators are easy to misunderstand, one only has to see the way that market share for example is deployed carelessly as a false proxy indicator of platform strength in the mobile device markets, but used carefully they can tell us important things about how the tech world is evolving. I know that some people, and you are a prime example, prefer to talk about spec lists and arcane technical details but those things are relative minor details, what really matters is the point at which business success, people's lives and technology meet in ways that changes the world.
RE: Lack of Apple innovation
4/10/2013 7:33:15 PM
"So no answer to my question about where the issue of market share lies on your imaginary spectrum of permissible discussion topics"
As usual, you have no point, so you try to change it... The are no subjects that are off limits. What I was getting at is that Person A and person B were discussing technology and innovation and you jump in with your usual "So, Apple made more money". It wasn't part of the discussion. You had nothing to add because you know we were right, so you changed the subject to money.
" people's lives and technology meet in ways that changes the world."
I am glad you said that because that is where we differ and you go way off the tracks... That is what its all about, but when "people's lives and technology meet in ways that change the world" it is because of the tech, and the features not because of the profit. In other words, (to put it on your own favorite platform's perspective) the iPhone in your hand changed the way you interface with the internet and the world when it came out in 2007. Apple's profit margins did NOT change the way you interface with the internet and the world. Or did they?
"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan
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