Business, Gadgets & Electronics, Telecom & Wireless

Apple's Struggles Drop Foxconn's Revenue 2.81% In 2016

Foxconn announced that its annual sales saw a decrease for the first time since it was listed in 1991 due to the mild demand from its major client Apple and the saturated smartphone market.

Foxconn revealed that in 2016 the company's revenue was NTD4.356 trillion, which was about USD136.38 billion, representing a year-on-year decrease of 2.81%. Meanwhile, the company said that its revenue increased by 9.76% year-on-year to NTD449.63 billion in December 2016, attributing to the increased demand for the 5.5-inch iPhone 7 Plus with the coming of Chinese New Year.

Foxconn's competitor Pegatron Corporation also revealed that in December 2016, its revenue saw a year-on-year decrease of 27.43% to NTD84 billion. Pegatron is mainly responsible for assembling the iPhone 7.

Foxconn's annual revenue decline was mainly because of Apple's revenue decline for the first time since 2001. Apple is the largest client of Foxconn and over 50% of Foxconn's revenue was from business with Apple.

In 2016, the shipments of iPhone decreased to 207 million units, while the number was 236 million units in 2015.

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