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Foxconn's FIH Mobile warns of 52 pct drop in net profit in 2016
October 3, 2016 / 12:12 PM / a year ago

Foxconn's FIH Mobile warns of 52 pct drop in net profit in 2016

TAIPEI, Oct 3 (Reuters) - Mobile phone maker FIH Mobile Ltd warned on Monday its consolidated net profit would more than halve this year as weaker sales dent business at the Hong Kong-listed unit of Hon Hai Precision Industry Co .

The 52-percent slide in profit expected by FIH Mobile underscores the challenges of a saturated smartphone industry and slowdown in demand from major markets such as China.

The pressures have also been felt at FIH’s Taiwan-based parent Hon Hai, which is the world’s biggest electronics manufacturer and goes by the trade name Foxconn.

A major assembler for Apple Inc’s iPhones, Foxconn’s net profit has fallen year-on-year every quarter since the last three months of 2015.

FIH Mobile, which analysts say makes smartphones for clients including Xiaomi Inc, Sony Corp and Motorola, said it expected its consolidated net profit would fall to less than $110 million in 2016.

The company said its second-half consolidated net profit would be higher than the $20.82 million posted in the first half, which was down more than 80 percent from 2015.

The second half of the year tends to be stronger than the first half for tech manufacturers as holidays bolster demand in the third and fourth quarters. Analysts, however, have warned any momentum a from seasonal pick-up might not be sustained. (Reporting by J.R. Wu; editing by David Clarke)

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