Reported That The Three Dilemmas Facing The Results Of Recession Foxconn - Foxconn, Difficult-it

5 17 Reuters, "Business Week" recently published an article

, pointing out that Foxconn is facing sharp drop in orders, rush less than smart Mobile Order to expand the three major carriers blocked predicament. The article said that Hon Hai has been a "cash cow" and Foxconn, and now performance is declining at an alarming rate, and that still do not see signs of a difficult situation.

Following is the full text article:

May 10 that day, two smart phone market while a press conference held in Taipei, the side of the world's leading mobile phone Nokia (Nokia); the other side, it is Taiwan's own brand Muchtel.

Interestingly, Nokia is Hon Hai's Foxconn International foundry cell phone (hereinafter referred to as Foxconn) of large customers, but Foxconn representative, but the day to Muchtel site wherever he goes, because this new phone, behind the scenes design foundry and manufacture, all from the hands of Foxconn.

2009, Hon Hai to pay a 37% profit growth, profit of 8.84 yuan per share, good results, coupled with Apple OEM's iPhone and iPad, selling an impressive ring in the world; with these exploits, June 8 will personally host the annual meeting of shareholders of Hon Hai chairman Terry Guo, facing shareholders, surely smiling.

Only in the minds of Terry Gou, there is a problem unsolved, Hon Hai had been "cash cow" and Foxconn, and now performance is declining at an alarming rate, but has also overcome the difficulties, see signs.

Dilemmas: sharp drop in orders for the two leading mobile phone

Last year, earnings release, Foxconn decline over the previous year net profit up 68%, from 1.2 billion U.S. dollars, decreased to 38.59 million U.S. dollars; one of the most important reason is that Foxconn customer orders from the former two sharp drop in lead .

In the past because the feature phone hot while retaining its position as the world's first mobile phone, two of Nokia and Motorola, the mobile phone design on behalf of the industry are the most important source of tourists, among which the Release of Motorola's most significant orders; but in recent years, market share Motorola losing ground, replaced by Samsung, but almost no outsourcing of production. In Financial After the tsunami, Nokia also announced that it will gradually recover their production in Finland, feature phone growth deteriorated, Foxconn has not grabbed enough orders to fill the hole smart phones.

Dilemma 2: rush orders less than smart phones According to market research agency I

DC Statistics, the first quarter of this year, shipments of smart phones to 5470, annual growth rate of 57% on average five mobile phones, smart phones, there is one; and Apple's iPhone, is one of the best, city accounting rate of 10.9% from the same period last year, growing to 16.1%.

Now, iPhone has become Hon Hai's profit guarantee, but rather the original name of pure design foundry cell phone listed Foxconn, in the scramble for high-speed growth of smart phone orders, it is very hard.

A Taiwanese mobile phone design foundry executives believe that smart phones better than personal computers, personal computers almost just one specification, that is, Intel

by: gaga

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