Feeds

Cocky Foxconn tells tech biz: We'll design your mobes, you do the ads

Factory barons upbeat after smashing profit prediction

The essential guide to IT transformation

The phone-making division of Foxconn swung into the black with a net profit of $75.1m (£47.5m) in 2011, according to its latest preliminary report to the Hong Kong Stock Exchange [PDF].

It also offered to take care of all the tough stuff in product design, leaving the marketing and branding to its tech titan clients.

The result is double the manufacturer's predicted profits for the financial year ending 31 December - Thomson Reuters analysts had forecast a profit of just $27m - and a contrast to the $219m (£138) loss that the mobe maker sustained in 2010.

Foxconn International churns out phones for Nokia, Sony and Motorola and is a subsidiary of Hon Hai Industries which also runs Foxconn Technology - the light-metals manufacturer that produces the iPhone and iPad among other gear.

The 2011 turnover for Foxconn International was $6.35bn, down 4.1 per cent from 2010's $6.63bn, but the company managed to grow its margins, an improvement that management attributed to attracting more high-end contracts for 3G smartphones rather than simpler and cheaper handsets. The management touted Foxconn's "one-stop-shop solutions" in design, manufacturing and logistics as being particularly attractive to clients.

Foxconn boasted that it leaves only the marketing to the brands that hire them: "Our customers can now focus on product positioning, marketing, sales and distribution while leaving us to take care of their product design and supply chain" said the report.

Bosses also listed ways they had cut costs in 2011, chiefly by "right-sizing capacity", getting rid of equipment that wasn't being used and cutting back on R&D in some areas.

Foxconn International also axed 27,819 jobs, reducing its workforce to 98,868 employees from 126,687 in 2010 and cutting the staffing bill by $22m to $533m. More job cuts may come as manufacturing automation was tipped as pivotal to long-term success in the management's outlook predictions.

Earnings per share were 1.01 US cents, up from a loss 3.06 cents a share in 2010. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?