Feeds

Nokia, Moto, Sony phone wing of Foxconn is soaked in red

Half-year loss sparks hunt for better customers

Top 5 reasons to deploy VMware with Tegile

Shares in Foxconn International Holdings slumped nearly 8 per cent today after the kitmaker reported a whopping loss for the first half of the year.

FIH, the bit of Hon Hai Group that works for Nokia, not Apple, has lost a record $226m so far this year as its star customer falters, compared to a loss of just $18m for the same time in 2011.

"During the first six months of 2012, we saw major changes in the handset ecosystem triggered by the end market volatility due to the European and global economic slow-down, the emergence of new service/applications-centric business models and resulting in our customers’ continuous struggle in their market share protection battle," FIH said.

The manufacturer's turnover also dropped almost 16.4 per cent to $2.5bn compared to $2.99bn in the first six months of last year.

FIH's customers are mobile-makers Nokia, Motorola and Sony/Sony Ericsson, while another unit of its sprawling Taiwanese parent manufactures kit for Apple and Samsung.

Unsurprisingly, the company said it was looking for new customers to help demand meet its capacity. FIH is also consolidating manufacturing sites and reorganising its business operations, but it said it was still "cautious" about the rest of the year.

FIH said: "Notwithstanding our continuous endeavours, at present, we still see tremendous challenges to restore our financial position to profitability by the end of 2012. Our strategy is to focus on new customers in smartphone sector." ®

Intelligent flash storage arrays

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
What a Mesa: Apple vows to re-use titsup GT sapphire glass plant
Commits to American manufacturing ... of secret tech
prev story

Whitepapers

Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.