Hon Hai Precision Industry, also known as Foxconn, which makes most of the world’s Apple iPhones, reported Tuesday the slowest monthly sales growth since February, stoking major concerns the upgrade cycle for new AI-enabled iPhones underwhelms.
Per the Bloomberg report:
Hon Hai, also a key server assembly partner to Nvidia Corp., on Tuesday reported sales of NT$804.9 billion ($25.2 billion) for October, up 8.6%. Analysts expect the company to grow its sales by 15% to NT$2.13 trillion in the current quarter. The iPhone assembler’s tepid sales growth appeared to reinforce Apple’s weak forecast for the holiday quarter.
Foxconn is Apple’s primary manufacturing partner, assembling most of its iPhones. This tight relationship implies Hon Hai’s revenue and growth are closely tied to Apple’s performance.
Last week, Apple earnings revealed Apple Intelligence was a dud and did not spark a massive new iPhone upgrade supercycle Wall Street analysts were hoping for. Sales in China slid for the fifth consecutive quarter as Hawuei continued taking market share.
Hon Hai’s earnings merely reflect Apple’s slowing iPhone sales, thus making it a proxy for the world’s most valuable company’s performance.
Meanwhile, Warren Buffett’s Berkshire Hathaway continued dumping Apple shares last quarter.
All this combined is not the best news for Apple investors.
Moar buybacks, please, Tim Cook.
Tyler Durden
Tue, 11/05/2024 – 08:45
