The Foxconn Technology Group, the world's largest Apple iPhones, wants to reduce spending by 20 million yuan (US $ 2.9 billion) in 2019 as "a very difficult and competitive annual face". company internal report
IPhon's business will reduce spending by 6 million pesetas next year and the company does not intend to step down 10% of technically unmanaged personnel, according to Bloomberg's note. In the last 12 months, the company's expenditure is around 206 billion yuan (6.7 billion dollars). Foxconn commented.
Surely, Foxconn measures the pessimism surrounding Apple's and Apple's inputs, its most important product. Only last week, four outlets from four continents reduced the income calculations due to poor demand. In recent days, it has caused a fall in the share of the technology that has expanded in the market.
Goldman Sachs has cut Apple's price target for the third quarter for the third time, due to weak iPhone demand in China and other new markets. Analyst Rod Halle warns of "real risk" projections if they continue with current trends.
Apple hit the market territory on Tuesday, closing 20% less than the October peak. One day, last week, Lumentum Holdings Inc., one of the suppliers with the lowest demand, dropped 33% and AMS AG fell 22%. This week, due to the widespread concern, S & P 500 won 2018.
Foxconn, based in Taipei, brings iPhones and laptops to Sony Corp.'s PlayStation in China and worldwide. Foxconn has been affected by the slowdown in the smartphone market; Trade tensions with the United States increase with global uncertainty. Earlier this month, emblemed by Hon Hai Precision Precision Industry Co-operation reported sales of 12% on sales.
The company will carry out an in-depth review of the managers to receive compensation of $ 150,000 per year, based on the memorandum. Among other cuts Foxconn Industrial Internet Co, a subsidiary of its Shanghai company, will be reduced by 3 million yuan.
Apple has adapted its strategy because the growth of mobile phones sold every year has been reduced. You get higher prices for each phone and you get more money for more services, including digital videos, music playback and data storage.
But most suppliers depend on a larger volume of their businesses to increase their businesses and do not have a profitable sponsorship plan, as the industry is down. For this reason, Liturum and Japan Display Inc. It has brought financial statements to companies.
"Suppliers have more volume than Apple," said Woo Jin Ho, Bloomberg Intelligence Analyst.