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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.

Source: Reuters



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RE: Hon hai who cares
By retrospooty on 4/11/2013 8:40:48 AM , Rating: 2
"Most reasonable people would agree they have ceased to innovate and are just selling the same old vanilla ios and hardware, with some token upgrades, in the same way they have done for a long time. And why not, consumers seem to be caught in a fad loop and apple is cashing in on that.
Nothing wrong with that, as long as we recognise it for what it really is."


Agreed, and well said. Any reasonable person would agree. Any reasonable business minded person would also cash in on it. Apple, as a business is uber-powerful.

"Apple is cashing in on the consumer fad in the same way the Bieber is cashing in on bubblegum pop teenie culture. Sure, Bieber is making buckets of cash, but is he creating good music? In the same way, apple is making buckets of cash, but are they innovating? Something to think about."

Exactly. But I think we are seeing the tide changing, and Apple sees it too. Rumors of several changes are all over the place. Cheaper low end models, a larger screen model, OS7 FINALLY updating the UI etc. And that is all good. If Apple ups it just a bit, it keeps the competition from stagnating. I personally think a 5 inch screened iPhone would sell insane amounts and make huge profits, and so would a cheaper low end model.


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