Foxconn cuts Android smartphone production against the background of falling demand for mobile devices. Foxconn, according to rumors, intends to reduce the production of Android-smartphones and change priorities in favor of another direction.
Sources Nikkei Asian Review reported that FIH Mobile, a division of Foxconn, which is just engaged in the assembly of smartphones, last year had a net loss of $ 857 million.
The number of orders is reduced, and many manufacturers, especially from China, cannot predict their sales and often reduce orders already during production. Earlier one brigade served on several brands, now everything is the opposite: one brand accounts for several teams of employees.
Now FIH Mobile cooperates with Xiaomi, Google, HMD Global, Lenovo, Meizu, Sharp, Smartisan and other manufacturers. But sources say that only Google’s smartphones make a profit.
However, production volumes are not so large as to fully load the lines, and though Xiaomi is the largest customer, it is not ready to pay a lot for the assembly, as it keeps the brand of one of the manufacturers with the cheapest smartphones.
Of course, Foxconn will not completely abandon the production of mobile devices, but the orders and the customers themselves will now definitely choose more deliberately. According to rumors, the company intends to abandon cooperation with HMD Global, as Nokia smartphones are produced almost at cost.
Instead, Foxconn will send vacant hands and heads to a different, more profitable direction – automotive electronics.
We remind you that this applies only to Android-smartphones. Cooperation with Apple continues, and just the other day Foxconn began production of the iPhone in India. This will reduce their cost by up to 20% due to taxes levied on goods during import.