Hon Hai quarter profit falls on iPhone X costs

An Apple Store worker counts money as they sell the new iPhone X on November 3, 2017 in Palo Alto, California. (AFP photo)

TAIPEI, Taiwan — Taiwanese tech giant and iPhone assembler Foxconn said Tuesday its third-quarter profit dropped by more than a third due to costs associated with producing the latest Apple smartphone.

The net income of the world’s biggest contract electronics maker in July-September fell 39.3 percent from a year earlier to Tw$21 billion ($696 million), lower than the Tw$37.2 billion estimate compiled by Bloomberg.

Revenue in the third quarter only increased a marginal 0.33 percent to Tw$1.08 trillion, according to a Hon Hai statement Tuesday. Foxconn is also known as Hon Hai.

The iPhone X is Apple’s most expensive flagship device. The new gadget — which marks the 10th anniversary of the first iPhone release — went on sale earlier this month with long queues at Apple stores around the globe.

Hon Hai’s fourth-quarter results should improve on sales of the iPhone X, which appears to be strong so far, analysts say. AFP