TAIPEI Oct 3 Mobile phone maker FIH Mobile Ltd
warned on Monday its consolidated net profit would
more than halve this year as weaker sales dent business at the
Hong Kong-listed unit of Hon Hai Precision Industry Co
The 52-percent slide in profit expected by FIH Mobile
underscores the challenges of a saturated smartphone industry
and slowdown in demand from major markets such as China.
The pressures have also been felt at FIH's Taiwan-based
parent Hon Hai, which is the world's biggest electronics
manufacturer and goes by the trade name Foxconn.
A major assembler for Apple Inc's iPhones,
Foxconn's net profit has fallen year-on-year every quarter since
the last three months of 2015.
FIH Mobile, which analysts say makes smartphones for clients
including Xiaomi Inc, Sony Corp and Motorola, said it
expected its consolidated net profit would fall to less than
$110 million in 2016.
The company said its second-half consolidated net profit
would be higher than the $20.82 million posted in the first
half, which was down more than 80 percent from 2015.
The second half of the year tends to be stronger than the
first half for tech manufacturers as holidays bolster demand in
the third and fourth quarters. Analysts, however, have warned
any momentum a from seasonal pick-up might not be sustained.
(Reporting by J.R. Wu; editing by David Clarke)