What happened: Taiwan’s contract electronics maker Foxconn reported a lower quarterly net profit on Monday, extending a downward streak to the second quarter. For the quarter ended June, Foxconn reported a net profit of T$17.49 billion, compared with T$17.9 billion a year ago, below analysts’ expectations polled by Reuters. Foxconn is also an Apple supplier.
Why it’s important: The results are disappointing and suggest an uncertain outlook for the global smartphone market, especially when the second half of the year is considered busy since that’s when new products are usually launched. The decreased revenue was mainly due to bleak demand from smartphone vendors. FIH Mobile, a Foxconn unit, acknowledged it faced a high risk of saturation in the smartphone market.