Hon Hai —better known as Foxconn —reported net income of just $589 million in the June quarter, missing analyst forecasts ahead of Apple’s launch of the “iPhone 8” and “iPhone 7s” this fall.
The consensus forecast had been about $781.5 million, Bloomberg said on Friday. No official Foxconn explanation for the results was immediately available.
Apple represents about half of Foxconn’s sales however, primarily from the iPhone. The June quarter is typically a slow period for that product, since the initial launch/holiday rush has long faded and many shoppers are waiting to see what Apple will debut in the fall.
Foxconn may have been hampered by alleged production delays for the “iPhone 8” —several earlier rumors hinted at problems with the device’s OLED screen, and even late decisions on whether or not to embed Touch ID in it. It’s now thought that Apple has dropped any such plans, and may even be using the phone’s 3D facial recognition as a total replacement.
The “iPhone 7s” and “7s Plus” will likely arrive in September and in significant quantities, but with only some of the upgrades present in the “iPhone 8.” While they may sport “A11” processors and wireless charging, for instance, they should have 4.7- and 5.5-inch LCDs, and retain physical home buttons in place of the virtual one on the “iPhone 8.” It’s also unclear whether they’ll have any facial recognition technology.