Among the various rumors of plans to move to the United States, to lower the production of the iPhone and the expansion of Apple to India, today Foxconn announces that it has seen the first drops in sales in 2016 since it went public to First time in 1991 . The decline that the company has suffered has been blamed on high demand from Apple, which is its most important customer, according to Nikkei.
In 2016 the figures reached by Foxconn remained at 136.38 trillion dollars, 2.81% less than in 2015 . For the company, Apple accounts for more than 50% of profits.
The first signs of tiredness
On the other hand, the month of December represented benefits for Foxconn, showing a growth of 9.76% year on year thanks to the Chinese New Year, as well as the high demand that has suffered the iPhone 7 Plus.
Investors and analysts have managed to ensure that Foxconn's decline is to blame for Apple's underperformance in 2016. Analyst Vincent Chen stressed that while in 2016 both Apple and Foxconn saw their first falls In more than 15 years, the picture seemed to be cleaner for both thanks to the upcoming iPhone 8 . According to Chen, 2017 could lead to growth of 5% to 10% for Foxconn.
Recently, in a press release, Foxconn founder -Terry Gou- reported that, despite rumors of a possible move to the United States, the company will remain in China . However, Gou did not deny the possibility of increasing its presence in the United States.
Apple's underperformance has not gone unnoticed by anyone either, as analysts and investors have been clamoring for an urgent change, but the company continues to endure the siege. The multiple reports released in 2016 asserted that Apple was decreasing the production of its iPhone, but it was not until a few weeks ago that a report clarified that those of Cupertino would be cutting the production of their smartphone by 10% in 2017 . Even Tim Cook suffered a $ 1.5 billion reduction in pay due to Apple's failure to reach the 2016 target.
None of the companies - Foxconn and Apple - seems to be having a good time. However, they have the opportunity to repair the mistakes of previous years in the just begun 2017 . Could the iPhone 8 be the piece that the company needs?
Do you think Apple is the culprit? Leave your answer in the comments!