Apple assembler Hon Hai Precision Industry Co., known as Foxconn, reported its third consecutive quarterly profit miss, after the company succumbed to a persistently weak Android phone market.
The company known as Foxconn, which makes most of Apple’s signature devices, reported net income of NT$12.8 billion ($417 million) for the first three months. That compared with the NT$29.8 billion average analysts’ estimate. Revenue rose almost 3% for the period, based on monthly sales figures.
Stronger-than-expected iPhone sales during the March quarter failed to completely offset weakness in overall Android phone-making. Foxconn and the broader smartphone industry continue to struggle with weak demand as consumers brace for a potential recession… Foxconn counts a plethora of Android phone makers among its clients, from Alphabet Inc.’s Google to Xiaomi Corp.
Foxconn has diversified its supply chain by expanding capacity outside of China, which has been its primary location for assembly almost since Steve Jobs introduced the device in 2007. The US company tripled iPhone production in India to $7 billion in the past fiscal year through help from its main assemblers, including Foxconn.
MacDailyNews Take: As predicted, the bottom of the market is the most affected by inflation and looming recession, not the top.
The good news is that Apple’s customers are the least affected by inflation and recession. – MacDailyNews, December 15, 2022
Apple iPhone customers are the most recession-proof smartphone buyers. — MacDailyNews, September 7, 2022
The same goes for Mac, iPad, Apple Watch, and Apple Services customers in personal computers, tablet computers, smartwatches, and subscriptions, respectively. – MacDailyNews, October 13, 2022
The most inflation- and recession-resistant big tech company is Apple, thanks to its superior customer demographics. – MacDailyNews, October 27, 2022
When your money becomes a greater concern, you want to spend it wisely. In China and everywhere, if it’s not an iPhone, it’s not an iPhone. Further, if it’s not an iPhone Pro, it’s not an iPhone Pro. – MacDailyNews, October 27, 2022
Those who settle for Android devices are not equal to iOS users. The fact is that iOS users are worth significantly more than Android settlers to developers, advertisers, third-party accessory makers (speakers, cases, chargers, cables, etc.), vehicle makers, musicians, TV show producers, movie producers, book authors, carriers, retailers, podcasters… The list goes on and on.
The quality of the customer matters. A lot.
Facile “analyses” that look only at market (unit) share, equating one Android settler to one iOS user, make a fatal error by incorrectly equating users of each platform one-to-one.
When it comes to mobile operating systems, all users are simply not equal. – SteveJack, MacDailyNews, November 15, 2014
See also: Apple iPhone increases its U.S. smartphone market share to 53% – May 10, 2023
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