Foxconn Technology Group, a Taiwan-based electronics manufacturer, is one of Apple’s largest iPhone suppliers. However, the company is planning to cut 10% of non-technical staff in a scramble to reduce costs due to slowing smartphone market.
Foxconn is not alone and other suppliers to Apple are reporting a significant declines in revenue. In part this is a result of Apple’s shift towards digital service based sales (i.e. music streaming, data storage etc.), as iPhone sales fall in China and other emerging markets. This trend is worrying for Apple’s suppliers who remain dependent on the volume of iPhone devices produced. On top of this escalating economic tensions between China and the US is adding to Foxconn’s woes, with potentially damaging financial consequences for Apple’s Chinese suppliers.
Read the full article here.