Foxconn Profits Plunge Nearly 40% Due to iPhone X Production Issues
Apple’s chief band of suppliers such as Foxconn are expected to benefit from the smartphone market penetration that the iPhone X is expected to cause. Unfortunately, the current financial position of the phone assembling company is looking very underwhelming as it has reported a near 40 percent decrease in profits. While the sales of the phone are not the primary concern for the tech company, what is important is that components used to make up the iPhone X suffered from production constraints.
Suspected Elements That Resulted in Profit Drop for Foxconn Were Face ID Components
While the actual reasons for the slowdown of the iPhone X have not been disclosed, it is suspected that the components that helped to enable Face ID were responsible. Face ID is the latest security implementation in the iPhone X and effectively replaces Touch ID.
Even during the official launch of the iPhone X, buyers reported that they would have to wait between 5-6 weeks before a unit was going to be shipped to them. However, it has been reported that the components responsible for the production deficit are going to go through a hefty amount of consistency, meaning that iPhone X production is expected to pick up the pace shortly.
There was even a report that during 2018, the iPhone X was going to be responsible for at least a 6 percent increase in smartphone shipments. That is a very impressive figure and it has also been reported that Apple will forego all the bezel models and release a total of three iPhones featuring an edge-to-edge glass next year.
Do you think Foxconn will be able to report better figures moving into 2018? Tell us your thoughts down in the comments.
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News Source: WSJ