Unexpected loss in second quarter profit for Apple’s supplier, Foxconn

There has been a report of 2.5 percent loss of quarterly profit on Tuesday for Foxconn, a Taiwan company that produce smartphones for Apple and different other brands.

The former Hon Hai Precision Industry, Foxconn is the world largest electronics maker was reported to have made a net profit of TWD 17.05 billion($542 million) for the last quarter of Apri-June as against TWD 16.01 billion forecast by compiled by numbers of analyst

The cause of the Foxconn loss in profit from TWD 17.49 billion in the previous year is yet be be explained by the company.

The manufacturer of most of the Apple’s iPhone, Foxconn from China for US market is being confronted by more stringent measure imposed by the Washington in the next quarter through extra tariffs on $300 billion of Chinese imports in which smartphones not left out.

In a bit to counter the result of extra tariffs from the Washington, Foxconn may likely considering relocating parts of its Apple’s production facility to Vietnam and India according to an analyst at Fubon Research in Taipei.

“We think Vietnam is more likely to be the primary production base for future Apple products as many components can be transported directly by train from China, saving customs-clearance and air-transportation costs,” he said.

It was also reported by the Reuters that the company is already struggling with less global patronage for its other electronics gadgets, hence contemplating on selling its display panel factory worth $8.8 billion in China.

Foxconn company’s shares value has fallen since one of its founder Terry Gou stepped down to contest for Taiwan Presidency and to pave way for younger talent in order to channel new growth strategy for the company.

Gou who lost out in his bid to contest in Taiwan’s 2020 presidential election as his opposition party didn’t nominate him.