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Tech scroll Asia

Foxconn shrinks Android arm and relocates staff as orders dry up

Tech giant shifts resources to newly launched automotive electronics

FIH manufactures Google's Pixel 3, shown here at its launch in Tokyo last year. Google is the only profitable smartphone contract for FIH, senior sources told Nikkei Asian Review.   © Kyodo

TAIPEI -- Foxconn's Android smartphone arm is scaling back its mobile business and moving into next generation automotive electronics in a bid to counter the impact of a deepening industry slump on the second tier brands that make up much of its client list.

Hong Kong-listed FIH Mobile, 62% owned by Taiwanese tech giant Foxconn, is one of the world's biggest contract manufacturers of Android phones with revenues of $14.9 billion last year. It is transferring hundreds of engineers and other resources from the Android smartphone operation, which makes up 90% of its revenues, to a newly established automotive electronics project, sources close to the subject told Nikkei Asian Review.

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