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Summary:

Hon Hai Precision Co. is the parent company of Apple’s biggest manufacturing partner. On Wednesday it reported it saw a 19 percent drop in its sales for the first quarter of 2013.

Credit: Bowen Liu/Apple Inc. via Bloomberg
photo: Credit: Bowen Liu/Apple Inc. via Bloomberg

We’re getting closer to when Apple will report its quarterly results for its sales from January through March.  And we have at least one sign that may shed some light on what to expect on April 23: Hon Hai Precision Industry Co., the parent company of Apple’s most important manufacturing partner, Foxconn, turned in some not-so-great earnings on Wednesday.

Reuters reported that Hon Hai saw a 19 percent drop in its sales from the same quarter a year ago. It saw sales of about $27 billion for the first quarter of this year, compared to $33.2 billion the same quarter in 2012.

It is possible that its sales are down because one of its other customers cut its orders way back. Apple is not Foxconn’s only customer; it manufactures hardware for many of the world’s most prominent device makers. But Apple is by far its biggest, thought to be responsible for up to 70 percent of Foxconn’s orders.

It also makes sense that Apple device orders from Foxconn could be down for the quarter: there was no big new Apple device launch between January and March and therefore no massive ramp up of new devices.

We’ll find out how much this was or wasn’t a reflection on Apple when it reports its fiscal Q2 results on April 23.

  1. Foxconn assembles more than just Apple’s products. Perhaps floundering PC industry has more part in that than Apple’s iPhone? Or even perhaps Apple had shifted a bit more manufacturing to Pegatron (another manufacturer for Apple’s iPhone and iPad) – Anyway Apple’s next earning report is expected on 23rd April.

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  2. Laughing_Boy48 Wednesday, April 10, 2013

    Tim Cook told these people that they shouldn’t base numbers of any one supplier for Apple component sales, but it just doesn’t do any good. Hon Hai deals with any number of companies and Windows PC sales are way down which could contribute to these high loss of sales numbers. These authors will always attribute any slowdown directly to Apple and iPhones because it makes them seem knowledgeable about Apple internal numbers. It’s a waste of Tim Cook’s time to even explain anything because it will automatically be ignored. That’s why every time he speaks, Apple’s stock drops even further. Nobody believes anything Tim Cook says. He’s no Steve Jobs, for sure. Tim Cook has no Reality Distortion Field. Tim Cook has an albatross about his neck and he needs to keep a low profile.

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    1. Tim is ignored by morons. He states facts; but the corrupt press perpetuates lies to the contrary. Only thing on his neck is garlic to keep you bloodsuckers away.

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  3. Chris Umiastowski Wednesday, April 10, 2013

    How can you honestly say that Apple accounts for 70% of Foxconn’s business? This is a HUGE misunderstanding of some basic facts.

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  4. Apple Inc. (NASDAQ:AAPL) is scheduled to announce its second quarter results on April 23, 2013. Credit Suisse Group AG (NYSE:CS) said in its latest research report that the iPhone maker’s earnings would easily outperform the Wall Street’s expectations.

    Analysts expect Apple Inc. (NASDAQ:AAPL) revenues to grow 10 percent Y-o-Y to $43 billion, while earnings would rise to $10.34 per share. Wall Street’s consensus estimates Apple Inc. to post $42.7 billion in sales with $10.13 in earnings.

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  5. Could the be partially due to Apple moving manufacturing of the iMac back to the United States?

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