- Foxconn had also reported a fall in profit figures for the last three months of 2019
- The company has assured its clients that it can get 5G phones ready to be launched later this year
Hon Hai Precision Industry (Foxconn) has witnessed a downfall in its sales during March 2020. A report published in the Reuters pointed out that Foxconn’s sales were down by 7.7 per cent during the month.
The company had also reported a fall in its profit figures during last three months of 2019. Citing Covid 19 pandemic, Foxconn had reported 23.7 per cent fall in its profit figures. Company’s annual revenue figures for the last fiscal stood at T$347.7 billion (approximately $11.50 billion). These figures, in comparison to 2018 fiscal, were down by almost T$ 29 billion.
It is to be noted here that Foxconn is one of the largest conntract manufacturing partner of Apple. In fact, Foxconn is counted as one among the largest contract manufacturers in the world.
Told investors can get 5G smartphones ready
The China-headquartered company has told its investors that it can still get 5G smartphones ready for launch before the end of 2020. Foxconn cited Covid 19 outbreak and restrictions laid by governments around the world as reasons behind the slowdown.
Interestingly, much of Apple’s 5G iPhone launch, at the moment, depends on Foxconn’s capability to manufacture and suply these. Apple’s competitiors, including Samsung, have already launched 5G smartphones in global markets.
Another report published by South China Morning Post pointed out that Foxconn has raised signing bonuses to attract new workers. Foxconn had to delay manufacturing plans as thousands of contract workers were unable to join its facilities due to Coronavirus outbreak.
5G smartphones market
A recent report by Goldman Sachs had forecast 5G smartphone shipments to reach value of $200 million globally. The report had noted that the predicted value is about 20 times more than the sales figure of 2019.
Samsung had earlier informed that it shipped more than 6.7 million 5G smartphones in 2019. A recent report published by Counterpoint had informed that all major smartphone OEMs (original equipment manufacturers) in the premium segment, except Apple, had 5G devices in their portfolios. LG, as per the same report, had captured a spot in the top five premium 5G OEMs in Q3 2019.
