Foxconn Technology Group, Apple's largest iPhone device, will try to reduce the cost by 20 billion yuan ($ 2,900,000,000) by 2019 as it is a "very difficult and competitive year." internal report of the company.
Next year, the cost of the iPhone business will decrease by 6 billion yuan and the company plans to spend around 10% of non-technical employees, according to a memorandum from Bloomberg. The company's loss for the past 12 months is about 206,000,000,000 yuan ($ 6,700,000). Foxconn declined to comment.
The Foxconn measures increase the pessimism surrounding Apple's and its most important iPhone product suppliers. Last week, four suppliers from three continents reduced their revenue estimates due to the low demand. This has led to a decrease in the share of technology introduced in the market in recent days.
Goldman Sachs has reduced the price of Apple for the third time this month. Analyst Roads Hold warned of "real risk" if the current trends continue.
Apple fell to the market on Tuesday and fell by 20% to its peak of October. Last week, Lumentum Holdings Inc., one of the suppliers that warns low demand, dropped 33% and AMS AG dropped by 22%. This week, according to the concern, S & P 500 has lost its profit in 2018.
Foxconn, located in Taipei, collects everything from iPhone and laptops to Sony Corp.'s PlayStation in factories in China and around the world. Foxconn suffered a decline in the smartphone market, while commercial tensions in the United States increase global uncertainty. Earlier this month, Hon Hai Precision Industry Co. company's flagship company is 12% lower than expected.
According to the Memorandum, the company will have a deeper understanding of managers who receive an annual compensation of over $ 150,000. Other abbreviations are registered in Shanghai, Foxconn Industrial Internet Co. has been reduced to 3 billion yuan planned for the subsidiary.
Apple adjusts the strategy as the annual increase in the number of smartphones sold. You can charge high prices for each phone, and get more money from your digital photos, including music and data storage.
However, most of its suppliers depend on large volumes to grow their businesses and do little to make a profit as the industry's growth rises. This is the Lumentum and Japan Display Inc. financial statements of companies.
"Providers are much larger than Apple," says Wu Jin Hoo, Bloomberg Intelligence analyst.