Arthur J. Villasanta – Fourth Estate Contributor
Tapei, Taiwan (4E) – In a clear sign all is not well at Apple, Inc, the company’s biggest supplier of iPhones announced its expectations that 2019 will be a “very difficult and competitive year,”
The declaration by Taiwan-based Hon Hai Precision Industry Co., Ltd., better known as Foxconn Technology Group, confirms a significant drop in demand for Apple iPhones worldwide. Foxconn is the primary manufacturer of the iPhone.
It announced a $865 billion reduction in its iPhone-related expenses. Foxconn also intends to fire also about 10 percent of its non-technical staff and review managers with annual salaries over $150,000. Foxconn said its expenses in the past year ballooned to more than $6.7 billion.
This distressing piece of news follows a report Foxconn had cut overtime hours typically available for workers after Apple cut production orders for its iPhone XS, XS Max and XR. Earlier this month, Apple all but admitted the 2018 models didn’t sell as well as analysts expected. These pricey smartphones costing over $1,000 hit the market only in September.
Foxconn is the world’s largest contract electronics manufacturer, and the fourth-largest information technology company by revenue. It employs over 800,000 people worldwide
Notable products manufactured by Foxconn include the BlackBerry; the Apple iPad, iPhone and iPod; Kindle; Nintendo 3DS; Nokia devices; Xiaomi devices; PlayStation 3; PlayStation 4; Wii U and Xbox 360 and Xbox One.
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