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Foxconn, the primary iPhone manufacturer, Cuts 2.9 billion USD!

Jtalk4456
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https://www.bloomberg.com/news/articles/2018-11-21/apple-s-biggest-iphone-assembler-is-said-to-plan-deep-cost-cuts

TLDR: Foxconn is the biggest assembler of iPhones, and it plans to cut 2.9 billion USD in 2019 according to an internal company memo

 

Quote

The iPhone business will need to reduce expenses by 6 billion yuan next year and the company plans to eliminate about 10 percent of non-technical staff, according to the memo obtained by Bloomberg. The company’s spending in the past 12 months is about NT$206 billion ($6.7 billion).

That's just shy of 900 million USD just in cut expenses, plus heavy cuts to staffing. To be fair this said non-technical staff, so this might not have the largest of effects on the Apple assembly part of the business.

 

Quote

 

Foxconn’s moves are likely to add to the gloom enveloping Apple and suppliers for the iPhone, its most important product. Just last week, four suppliers on three continents cut their revenue estimates because of weak demand. That set off a rout in technology stocks that has spread to the broader market in recent days.

Goldman Sachs cut its price target for Apple for the third time this month because of weak iPhone demand in China and other emerging markets. Analyst Rod Hall warned of “material risk” to guidance if the current trends continue.

 

So even if it has little to no effect on the apple portion of the business, speculation alone is still hurting apple stocks and will continue to dip it even further...
Quote

 

Taipei-based Foxconn assembles everything from iPhones and laptop computers to Sony Corp. PlayStations at factories in China and around the world. Foxconn has been hit by a slowing smartphone market, while trade tensions with the U.S. add to global uncertainty. Earlier this month its flagship Hon Hai Precision Industry Co. posted earnings that were about 12 percent below expectations.

The company will conduct an in-depth review of managers with an annual compensation of more than $150,000, according to the memo. Other cuts include a planned 3 billion yuan reduction in expenses at Foxconn Industrial Internet Co., its Shanghai-listed offshoot.

 

The second half of that is a good idea in my opinion. If I'm paying someone that much, they can expect to be under high scrutiny to make sure i'm getting my money's worth.

Quote

 

Apple has adjusted its strategy as growth in the number of smartphones sold each year has slowed. It can charge higher prices for each handset and pull in more money from services, including digital videos, streaming music and data storage.

But most of its suppliers rely on increased unit volumes to grow their businesses and have no profitable back-up plan as the industry growth slows. That has led to the financial warnings at companies such as Lumentum and Japan Display Inc. “Suppliers are more dependent on volume than Apple,” said Woo Jin Ho, an analyst at Bloomberg Intelligence.

 

In other words, press F for Foxconn and other suppliers. 

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The smartphone maket in the US has leveled off. Apparently the XR is selling well in China but not so much in the US. 

 

Infinate growth isnt possible, with the stock market crash yesterday, everyone is just falling back to reality :) 

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8 minutes ago, DrMacintosh said:

The smartphone maket in the US has leveled off. Apparently the XR is selling well in China but not so much in the US. 

 

Infinate growth isnt possible, with the stock market crash yesterday, everyone is just falling back to reality :) 

like many tech channels have said, the smartphone market just isn't as exciting anymore. We're reaching a plateau of change with smartphones. The question is how much tha fall back to reality hurts apple. Even if their bottom line is barely affected, speculation drives the stock market and is already hurting them.

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16 minutes ago, Jtalk4456 said:

That's just shy of 900 million USD just in cut expenses, plus heavy cuts to staffing. To be fair this said non-technical staff, so this might not have the largest of effects on the Apple assembly part of the business.

Does feeding stuff to a machine and tightening screws count as being "technical staff"?

Don't ask to ask, just ask... please 🤨

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Sauron'stm Product Scores:

Spoiler

Just a list of my personal scores for some products, in no particular order, with brief comments. I just got the idea to do them so they aren't many for now :)

Don't take these as complete reviews or final truths - they are just my personal impressions on products I may or may not have used, summed up in a couple of sentences and a rough score. All scores take into account the unit's price and time of release, heavily so, therefore don't expect absolute performance to be reflected here.

 

-Lenovo Thinkpad X220 - [8/10]

Spoiler

A durable and reliable machine that is relatively lightweight, has all the hardware it needs to never feel sluggish and has a great IPS matte screen. Downsides are mostly due to its age, most notably the screen resolution of 1366x768 and usb 2.0 ports.

 

-Apple Macbook (2015) - [Garbage -/10]

Spoiler

From my perspective, this product has no redeeming factors given its price and the competition. It is underpowered, overpriced, impractical due to its single port and is made redundant even by Apple's own iPad pro line.

 

-OnePlus X - [7/10]

Spoiler

A good phone for the price. It does everything I (and most people) need without being sluggish and has no particularly bad flaws. The lack of recent software updates and relatively barebones feature kit (most notably the lack of 5GHz wifi, biometric sensors and backlight for the capacitive buttons) prevent it from being exceptional.

 

-Microsoft Surface Book 2 - [Garbage - -/10]

Spoiler

Overpriced and rushed, offers nothing notable compared to the competition, doesn't come with an adequate charger despite the premium price. Worse than the Macbook for not even offering the small plus sides of having macOS. Buy a Razer Blade if you want high performance in a (relatively) light package.

 

-Intel Core i7 2600/k - [9/10]

Spoiler

Quite possibly Intel's best product launch ever. It had all the bleeding edge features of the time, it came with a very significant performance improvement over its predecessor and it had a soldered heatspreader, allowing for efficient cooling and great overclocking. Even the "locked" version could be overclocked through the multiplier within (quite reasonable) limits.

 

-Apple iPad Pro - [5/10]

Spoiler

A pretty good product, sunk by its price (plus the extra cost of the physical keyboard and the pencil). Buy it if you don't mind the Apple tax and are looking for a very light office machine with an excellent digitizer. Particularly good for rich students. Bad for cheap tinkerers like myself.

 

 

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49 minutes ago, DrMacintosh said:

The smartphone maket in the US has leveled off. Apparently the XR is selling well in China but not so much in the US. 

 

Infinate growth isnt possible, with the stock market crash yesterday, everyone is just falling back to reality :) 

and so begins the recession that we're overdue for. (generally 1 every decade, hasn't been one in a while)

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This is a tough one. They could save a lot with robots, but when the robots jump they'll need stronger, more expensive netting. 

muh specs 

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Stuff- Epicgear defiant (solderless swappable switches), g600, moutned mic and other stuff. 

Laptop docking area- 2 1440p korean monitors mounted, one AHVA matte, one samsung PLS gloss (very annoying, yes). Trashy Razer blackwidow chroma...I mean like the J key doesn't click anymore. I got a model M i use on it to, but its time for a new keyboard. Some edgy Utechsmart mouse similar to g600. Hooked to laptop dock for both of my dell precision laptops. (not only docking area)

Shelf- i7-2600 non-k (has vt-d), 380t, some ASUS sandy itx board, intel quad nic. Currently hosts shared files, setting up as pfsense box in VM. Also acts as spare gaming PC with a 580 or whatever someone brings. Hooked into laptop dock area via usb switch

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2 minutes ago, Syntaxvgm said:

This is a tough one. When the robots jump, they'll need stronger, more expensive netting. 

it's either jumping of the roof or starting the war with men ?

.

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20 minutes ago, bcredeur97 said:

and so begins the recession that we're overdue for. (generally 1 every decade, hasn't been one in a while)

Well I mean the last (US) recession "ended" in 2009, not to mention how you could argue it came 2-4 years early so with your model of once every decade, you could argue it being bang on time :P 

Looking at my signature are we now? Well too bad there's nothing here...

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

What? As I said, there seriously is nothing here :) 

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11 hours ago, DrMacintosh said:

...the stock market crash yesterday...

Yesterday?

 

Oh, oh no, that wasn't a crash.

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All you had to do is make the phone less expensive.

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