Feeds

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

Factory barons upbeat after smashing profit prediction

Top 5 reasons to deploy VMware with Tegile

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.