Foxconn, otherwise known as Hon Hai Precision Industry, has posted its financial results for the first quarter of the year, showing a decline in sales thanks to weaker than expected demand for Apple's iPhone.

Foxconn, otherwise known as Hon Hai Precision Industry, has posted its financial results for the first quarter of the year, showing a decline in sales thanks to weaker than expected demand for Apple's iPhone.

 
The company, which assembles products for Apple and other top technology firms, brought in T$808.97 billion, a 19 percent decline on the figure earned at the same period the year previous, and a similar decline from the T$988.34 it made in the fourth quarter of 2012.
 
While Foxconn has contracts with other companies like Google, Microsoft, Nokia, HP, Dell and Sony, it earns an estimated 60 to 70 percent of its revenue from Apple, and is thus subject to any fluctuations in demand for Apple products.
 
 
Demand for the iPhone and other Apple devices has weakened recently, with the Cupertino, California-based company missing revenue forecasts made by analysts for the fourth quarter of 2012, which is traditionally the most lucrative few months of the year.
 
Foxconn's exposure to Apple has helped it post huge profits in years past, but that same exposure could become a major weakness if Apple continues to lose market share to rivals like Samsung.
 
Despite the weak performance, Foxconn shares were up $0.10, or 0.12 percent, to $80.60 at the time of writing.
 
Source: Reuters