Foxconn is afraid to run for a loss all year

August 30 Morning News, according to Taiwan media reports, Hon Hai Group's Hong Kong-listed mobile phone factory Foxconn, will be announced today after the board of Directors of the semi-annual report.　　Market participants pointed out that Foxconn has released a first-half profit warning message, the loss will be larger than the same period last year, considering the second half of the return of orders is not obvious, Foxconn's earnings throughout the year is afraid to flee the deficit fate. Market personage analysis, Hon Hai Group is now the world's important mobile phone foundry Enterprises, from upstream 0 components to the downstream assembly, responsible for a number of related supply chain.　　Apple's smartphone sales have gone up in recent years, but Apple's orders fell to Hon Hai, not Foxconn, and Foxconn, which has reduced orders and poor profits, is the main cause of the losses.　　Foxconn has issued a profit warning, expecting a semi-annual loss of 19 million dollars over a year earlier, mainly because of falling product prices, changes in product mix and higher depreciation costs. Foxconn is Hon Hai's mobile phone Foundry Company, which deals in Hong Kong, with a stake of about 72% per cent in Hon Hai.　　In the past, Foxconn benefited from a lot of profits outside Hong Hai, but Foxconn's performance in the last two years was good and bad, recovering profits in the second half of the year, but this year it will be lost again, and Hon Hai also needs to identify losses in proportion to its shareholding. In the second half of 2008, the global financial tsunami, Foxconn's largest customer Nokia retracted printed circuit board assembly orders, changed to self-control.　　Although this is a relatively low margin of the foundry industry, but a large number of Nokia orders to return to date is not obvious, the five major brands this year, the performance growth is not much, has become a loss to the profit of Foxconn's obstacles.　　To expand the smartphone business, Foxconn has increased its numbers to 3000 in recent years, and has received orders from well-known brands such as Palm, Dell, Hewlett-Packard, Acer and Asus, but these brands are still starting in the smartphone market, with fewer than 50,000 individual months to support the huge cost of spending. Foxconn's contribution to the parent company's Hon Hai over the past few years has been so low that it may even shift to a recognized loss this year. Hon Hai's 2008 Liefuskan investment interest was about $87.8 million trillion, and last year Foxconn earned $39 million trillion, and Hon Hai could only make $28 million. (Wood)