iPhone maker Foxconn's net profit dips for 3rd straight year

Apple suppliers resume China production but uncertain demand clouds outlook

Foxconn is having a difficult start to 2020 as the coronavirus pandemic disrupts its supply chain and labor pool. © Getty Images

LAULY LI and CHENG TING-FANG, Nikkei staff writers

March 30, 2020 21:31 JST

TAIPEI -- Key iPhone supplier Foxconn on Monday reported a third consecutive year of lower profits as the smartphone industry continues to slow.

Net income at Foxconn, formally traded as Hon Hai Precision Industry, fell 10% to 115.3 billion New Taiwan dollars ($3.81 billion) in 2019, while operating income dipped nearly 16% on the year. The company's gross margin was 5.9%, lower than the 6.27% in 2018 and well below its goal of 10% by 2025.