First annual sales decline posted by Foxconn, the company that assembles the iPhone
Foxconn Technology Group (Hon Hai Precision Industry) is the company that, among many others, is responsible for assembling Apple’s iPhones. The tech giant went public in 1991 and has recorded increasing year-over-year sales figures ever since.
However, on Tuesday, the company reported its first-ever annual sales decline since 1991, with posted revenues of 4.356 trillion New Taiwan dollars (around $136.38 billion), which is down 2.81% from a year ago. While some might argue that a sub-three-percent decline is nothing to be worried about, it is still a decline for a company that continuously grew in the past 26 years.
Apple is Foxconn’s main client, accounting for more than 50% of its revenue; the decline is believed to be directly tied to a slowing iPhone demand (and Apple’s first revenue fall since 2001). However, in December of 2016, Foxconn grew 9.76% year-on-year due mainly to the Chinese New Year holidays and growing demand for the iPhone 7 Plus model.