Hon Hai's Profit Miss Reflects Growing iPhone-Supplier Woes

Hon Hai’s disappointing earnings will fan fears that Apple’s legion of global hardware suppliers are in for hard times, according to Bloomberg.

The main assembler of iPhones reported net income of NT$24.9 billion ($806 million) in the September quarter, about 12 percent below the average analysts’ estimate. Hon Hai joins a string of Apple suppliers that’ve warned of a worsening outlook as iPhone volumes plateau alongside a lethargic smartphone market.

Hon Hai, known also as Foxconn, is among a bevy of companies that together crank out devices for Apple and just about every other major consumer electronics label. But the once-red-hot global smartphone market has flat-lined as economic uncertainty spreads, and a persistent lack of new or innovative devices discourages buyers. Apple itself has reported disappointing iPhone sales and projected holiday-quarter revenue below expectations.