TAIPEI: Taiwan’s Foxconn reported a 39 percent slide in quarterly profit, far worse than expected, as the assembler of Apple Inc. products saw margins squeezed by production bottlenecks for the iPhone X.
While the 10th anniversary version of the iPhone has seen parts suppliers struggle with specifications for new features such as facial recognition and edge-to-edge display, red-hot demand for the product, which went on sale this month, is expected to lead to a relatively rapid recovery for Foxconn.
Apple has predicted strong holiday sales and said it is happy with how manufacturing of the iPhone X is progressing, although most analysts think it will likely take until next year or early spring for the tech giant to meet demand.
The world’s largest contract electronics manufacturer, known formally as Hon Hai Precision Industry Co, said third-quarter net profit tumbled to T$21 billion ($700 million), some 42 percent below an average estimate from analysts.
It was Foxconn’s first quarterly decline in a year and marked its biggest profit drop for a quarter since at least 2009. Revenue was flat.
“I think in the fourth quarter we expect to see a recovery because utilization will get better given the iPhone ramp-up,” said Daiwa analyst Kylie Huang.
“So November/December should be better but still will be impacted overall in the fourth quarter.”
Some analysts also attributed the profit slide to an appreciation in the value of the yuan as well as to labor idled due to a later-than-usual launch for Apple’s new smartphone.
Although the iPhone 8 kicked off sales in September in line with its previous new phone launches, demand was lacklustre as consumers waited for the iPhone X.
Foxconn is widely believed to be the sole manufacturer for the iPhone X. It manufactures the bulk of iPhones at massive facilities in China, and Nomura Securities estimates it produces around 67 percent of all iPhones Apple sells, with the rest made by the likes of Taiwan’s Pegatron Corp. and Wistron Corp.
Shares in Foxconn fell as much as 2.8 percent in Wednesday trade to their lowest level since late September, underperforming the broader Taiwan market which was down 0.5 percent.
The stock, worth around $61 billion, has declined 10 percent over the past three months, partly pressured by weak sales for the iPhone 8 and concerns over the iPhone X.
Apple said it sold 46.7 million iPhones in the quarter ended Sept. 30, above analysts’ estimates of 46.4 million, according to financial data and analytics firm FactSet.
— REUTERS
Foxconn profit tumbles after iPhone X production hurdles
Foxconn profit tumbles after iPhone X production hurdles
Closing Bell: Saudi main market sheds 85 points to finish at 11,098
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower in the latest session, falling 85.79 points, or 0.77 percent, to finish at 11,098.06.
The MSCI Tadawul 30 Index declined 0.63 percent to close at 1,495.23, while the parallel market index Nomu dropped 0.91 percent to 23,548.56.
Market breadth was firmly negative, with 42 gainers against 218 decliners on the main market. Trading activity saw 226 million shares exchanged, with total turnover reaching SR4.5 billion ($1.19 billion).
Among the session’s gainers, Tourism Enterprise Co. rose 9.40 percent to SR15.02. SHL Finance Co. advanced 4.51 percent to SR16.00, while Almasar Alshamil for Education Co. gained 3.56 percent to SR23.88.
Dar Alarkan Real Estate Development Co. added 3.03 percent to SR19.70, and Banque Saudi Fransi climbed 2.61 percent to SR19.30.
On the losing side, Almasane Alkobra Mining Co. recorded the steepest decline, falling 6.61 percent to SR96.
Al Moammar Information Systems Co. dropped 5.14 percent to SR164.20, while National Company for Learning and Education declined 4.60 percent to SR124.30. Saudi Ceramic Co. slipped 4.14 percent to SR27.30, and Arabian Contracting Services Co. fell 4.12 percent to SR116.50.
On the announcement front, Saudi Telecom Co. announced the distribution of interim cash dividends for the fourth quarter of 2025 in line with its approved dividend policy.
The company will distribute SR2.74 billion, equivalent to SR0.55 per share, to shareholders for the quarter.
The number of shares eligible for dividends stands at approximately 4.99 billion shares. The eligibility date has been set for Feb. 23, with distribution scheduled for March 12.
The company noted that treasury shares are not entitled to dividends and that payments will be made through Riyad Bank via direct transfer to shareholders’ bank accounts. stc shares last traded at SR44.80, unchanged on the session.
Separately, National Environmental Recycling Co., known as Tadweer, reported its annual financial results for the year ended Dec. 31, 2025, posting significant growth in revenue and profit.
Revenue rose 53.5 percent year on year to SR1.24 billion, compared with SR806 million in the previous year. Net profit attributable to shareholders increased 68.4 percent to SR60.9 million, up from SR36.2 million a year earlier, driven by higher sales volumes and operational expansion.
Tadweer shares last traded at SR3.80, up 2.70 percent.
