Foxconn Profit Declines

Foxconn Technology Group, the main manufacturer of Apple Inc. devices, posted an 8.7% decline in third-quarter profit, weighed down by recently acquired Japanese electronics maker Sharp Corp.

Losses at Sharp were a drag on what was otherwise a quarter of brisk sales because of production of the iPhone 7 for Apple, Foxconn’s largest customer.

In the quarter to September, Foxconn reported sales of 1.07 trillion New Taiwan dollars ($33.57 billion), up 0.91% on the year. Operating profit rose 10.33% year-over-year to NT$42.1 billion, but net profit fell 8.51% to NT$34.63 billion.

Foxconn Chairman Terry Gou told the Nikkei Asian Review on Nov. 5 that Foxconn has now deployed 60,000 robots on its production lines.

“We plan to increase that number by 20% to 30% every year,”

Gou said.

“We’ve already had some lights-off facilities [due to large-scale deployment of robots] and we will have more of them in the future.”

On Thursday, Foxconn reported revenue of NT$471.93 billion for October, down 6.17% year-over-year. The numbers raise questions about how strong demand will be for client Apple’s new iPhone 7 range over the coming holiday season.

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