Foxconn Reports 20% Drop in Revenue in December

One of Apple main suppliers, Hon Hai Precision Industry, which is also known as Foxconn, has reported a 20% drop in revenue in December. The revenue of the company in the last month of 2015 accounted for $12.3 billion.

As to the total revenue for 2015, it grew 6.42% compared to the revenue of 2014. Still, the experts predicted even better results, so looks like there’s something wrong with the demand for Apple’s iPhone 6s and iPhone 6s Plus, the most popular devices Foxconn assembles. What’s interesting is that another Apple supplier, Taiwan Semiconductor Manufacturing Company, also reported about a drop in revenue in December and 2015.

Foxconn is reportedly planning a normal Chinese New Year break, in contrast to past years where workers worked overtime to keep production lines going through the holiday. Previous reports have said that Apple is planning to cut production of its iPhone 6s models by around 30% in the January to March quarter compared to original production plans for the quarter.

While both iPhone 6s and iPhone 6s Plus are pretty decent devices, the demand for them is much lower that Apple and most experts expected. Looks like most of the customers are already waiting for the iPhone 7.

[via iClarified]