The iPhone 5 was released late last year and has achieved great success. At over six months on the market there are signs of the demand for the device decreasing. Foxconn are the company that are responsible for manufacturing the iPhone 5 along with many other Apple products and due to the demand for the handset slowing down the manufacturer has recorded a drop in revenues for the the first quarter. 
The drop in revenue that the Chinese manufacturer Foxconn are experiencing is being put down to the declining demand for the iPhone 5. It has been said by PC World that the company have registered a 19.2 per cent drop year on year in terms of revenue. The company analyst is putting the decline down to the fact that the iPhone 5 has not proved to be as popular as its predecessor and therefore, demand has started to decline. The part of Foxconn’s business that is responsible for Apple’s devices is Hon Hai Precision who have posted a revenue of £18 billion with a net profit increase of 8.4 per cent year on year. There are a large number of consumers that have chosen to purchase the new iPad Mini rather than the iPad which is both more expensive and profitable. This is another factor that has contributed to the decline. Click here for more iPhone 5 News
Foxconn are expected to also experience a poor second quarter according to an analyst. It was commented by Arthur Lia that “I also believe (Hon Hai’s) second quarter will be worse than the first quarter”. As a result of the increasing speculation that is surrounding the forthcoming iPhone 5S and the iPhone 6 interest in the current iPhone 5 is on the decline. We expect to see the iPhone 5S arrive this September and the iPhone 6 is rumoured to debut in early 2014. In the second quarter there are also some high profile devices that will rival the iPhone 5 in the form of the new Google Nexus 5 and in particular the Samsung Galaxy S4 which is predicted to become the best selling device in the world this year. These are sure to contribute to the predicted poor performance. Discover great iPhone 5 O2 deals here
Foxconn’s dramatic decline in revenue has mainly been put down to the drop in demand for the iPhone 5 although we expect that things will improve for the company when the new iPhone 5S is released.
