Feeds

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

Factory barons upbeat after smashing profit prediction

Next gen security for virtualised datacentres

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. ®

Build a business case: developing custom apps

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
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Broadband slow and expensive? Blame Telstra says CloudFlare
Won't peer, will gouge for Internet transit
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
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?