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Key Apple suppliers suffer big profit drop as iPhone woes bite

Foxconn and Pegatron see major drop as tariff challenge looms

Apple's decision to cut prices is hitting manufacturers. (Photo by Kosaku Mimura)

TAIPEI -- Major iPhone assemblers Foxconn and Pegatron suffered significant profit declines in the quarter ended in March, as Apple's decision to cut retail prices amid slowing demand hurt manufacturers.

Foxconn, which formally trades as Hon Hai Precision Industry, released it quarterly earnings on Tuesday evening, revealing that its operating profit plunged nearly 35% on the year and net income fell nearly 18% annually. Rival Pegatron's profitability was squeezed even further. Its operating profit plummeted 80.5% on the year and net profit dropped by 36%.

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