iPhone slowdown hits Foxconn revenue
April 11, 2013 -- Updated 0944 GMT (1744 HKT)
Workers inspect motherboards on a factory line at the Foxconn plant in Shenzen on May 26, 2010.
- Foxconn reports 19.2% drop in revenue during the first quarter on slower iPhone orders
- Editor-in-chief for Engadet China says Foxconn may be too reliant on Apple
- Samsung toppled Apple as the world's largest smartphone maker in 2012
- Apple scheduled to report first quarter earnings on April 23
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.
Why did Apple apologize to China?
Tech 2012: Kickstarter and Foxconn
"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.
Today's five most popular stories
Part of complete coverage on
October 9, 2014 -- Updated 0804 GMT (1604 HKT)
Liberia, Sierra Leone and Guinea -- the three countries facing the biggest health crisis -- are also facing huge bills to try and contain the virus.
September 22, 2014 -- Updated 1316 GMT (2116 HKT)
Twitter has lost its position in the top 20 coolest brands for the first time in three years.
September 25, 2014 -- Updated 1554 GMT (2354 HKT)
As the crisis in Iraq escalates, CNN looks at how Iraq could crack down on ISIS' oil riches under the guidance of its new oil minister, Adel Abdul Mahdi.
August 29, 2014 -- Updated 0842 GMT (1642 HKT)
Recep Tayyip Erdogan is Turkey's new president . So can he revitalize its economic fortunes?
September 19, 2014 -- Updated 1724 GMT (0124 HKT)
Experts share their tips on cities they see as emerging financial hubs...they're not where you think.
October 9, 2014 -- Updated 1511 GMT (2311 HKT)
Growing numbers of us are willing to serve as bank, teacher or travel agent to people we have never met, and entrust them to serve us in turn.
August 28, 2014 -- Updated 1244 GMT (2044 HKT)
The European Union is stepping in to save its dairy from going sour.
August 18, 2014 -- Updated 1236 GMT (2036 HKT)
Europe's deteriorating relationship with Russia has hit the region's growth, even before new food sanctions begin to bite.
July 16, 2014 -- Updated 1634 GMT (0034 HKT)
With cyberattacks on the rise and here to stay, it's a modern-day challenge for people and businesses to get smarter about preventing them.
August 14, 2014 -- Updated 1324 GMT (2124 HKT)
Airstrikes, rebels seizing control of oil fields, plus a severe refugee crisis are a recipe for market panic. So why are Iraq oil prices stable?
September 19, 2014 -- Updated 1124 GMT (1924 HKT)
Peer-to-peer finance lets businesses bypass bank loans. Creative companies with quirky ideas find new lending models advantageous.
July 20, 2014 -- Updated 1524 GMT (2324 HKT)
Evidence points to pro-Russian separatists as perpetrators of the attack and Vladimir Putin is facing questions, David Clark writes.
September 3, 2014 -- Updated 0952 GMT (1752 HKT)
CNN's Jim Boulden looks on the future of online shopping.
August 5, 2014 -- Updated 1440 GMT (2240 HKT)
The biggest Ebola outbreak in history is taking its toll in Western Africa, hitting some of West Africa's most vulnerable economies.