iPhone slowdown hits Foxconn revenue

Hong Kong (CNN) -- The parent company of Apple's biggest parts supplier, Taiwan-based Hon Hai Precision Industry, also known as Foxconn, had a 19.2% drop in revenue during the first quarter as iPhone orders slowed down faster than expected.

Hon Hai reported first quarter 2013 revenue of nearly $27 billion, down from $33.4 billion during the same period last year, according to company reports.

Hon Hai's share price fell 0.25% by mid-day trading Thursday. The company's share price has fallen nearly 9% year-to-date.

Richard Lai, Editor-in-chief for Engadget China, says that increased competition in the smartphone market suggests an overreliance on Apple behind Foxconn woes.

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"If you go along the streets now, a lot of people are holding a Samsung device more than an Apple device. Many people are getting bored with the iPhone look or frustrated with the iPhone's battery life. On the other hand, Samsung has been offering better battery life and bigger screens."

In 2012, Samsung toppled Apple as the world's largest smartphone maker. According to IDC, Samsung held 29% global market share in the fourth quarter of 2012; Apple trailed at number two with 21.8%.

As for Hon Hai's sales slump, Lai points out the company has other businesses that may not be doing well.

"In China, they have Cybermart, a chain of retail stores that sells electronics. Hon Hai also sells an HDTV, under the Radio Shack brand," Lai said. "But until Hon Hai releases its next earnings report we won't be able to know...about where they've failed."

Apple is scheduled to report first quarter earnings on April 23. Apple's share price is down 18% year-to-date.