Feeds

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

Half-year loss sparks hunt for better customers

Boost IT visibility and business value

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." ®

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
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
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
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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 distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.