Reuters is reporting that Hon Hai Precision Technology otherwise known as Foxconn to us westerners, saw a 19% drop in sales during the first quarter of 2013. Analysts are attributing the vanishing sales to a decline in demand for the Apple iPhone.
Foxconn sales dipped to $26.96 billion in the first quarter, which is down from nearly $33 billion in Q4 of 2012, and $33.3 billion in the same quarter the previous year. KGI Securities analyst Ming-chi Kuo says that this decline is not surprising as first quarter reports always look worse than Q4 reports that have holiday sales included.
Kuo went on to say that the real telling figure is that Foxconn's year to year revenue is in the decline and that "shows that Hon Hai's revenue depends too much on Apple, and iPhone orders corrected more than expected." Apple shareholders do not appear to seem to be very concerned with this news as their stock remained flat after the Foxconn report was released.