Foxconn-owner Hon Hai's shares dip as its profit falls

Workers at a Foxconn factory Hon Hai has been raising salaries for its staff amid criticism over working conditions at some of its factories

Related Stories

Shares in Foxconn-owner Hon Hai dipped after the electronic components maker reported weaker-than-expected profits for the first quarter of 2012.

Its shares fell by as much as 7% in early trading.

On Saturday it said it made a net profit of NT$14.9bn ($511m; £314m) in the January-to-March quarter, compared with NT$35bn in the previous quarter.

Hon Hai, which makes components for the iPhone, Kindle and Wii, has seen its costs go up amid rising wages.

The firm has also been building new factories in a bid to move its production to interior regions of China.

Contrasting fortunes

Hon Hai is the parent company of Foxconn which manufactures products for some of the biggest brands in the world.

Its results come just days after Apple said that its profits almost doubled in the first three months of the year.

Apple said it made a net profit of $11.6bn (£7.2bn), up from $6bn in the same period last year and much better than analysts had expected.

The technology giant sold 35 million iPhones in the quarter, which was almost double the level of a year ago.

However some analysts said that despite the rise in the number of Apple products being sold, manufacturers such as Hon Hai had not seen a proportional benefit as profit margins on Apple's gadgets have been declining.

More on This Story

Related Stories

More Business stories

RSS

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.