Foxconn, the Taiwanese electronics manufacturing giant perhaps better known as Apple (AAPL)’s biggest parts supplier, saw its Q1’13 sales decline by more than 19% on a year-over-year basis, as iPhone orders slowed down faster than expected.
According to company reports, during the three-month period ending March, Foxconn’s sales totaled $26.96 billion, down from $33.4 billion in the comparable quarter of FY 2012.
“A quarterly decline was expected, but not a yearly decline,” KGI Securities analyst Ming-chi Kuo was quoted as saying by Reuters. “This shows that [Foxconn]’s revenue depends too much on Apple, and iPhone orders corrected more than expected.”
Kao expected the main assembler of Apple products, which according to Reuters, draws an estimated 60%-70% of its revenue from assembling Apple’s iPhones and iPads, as well as performing other services for the iPhone maker, to post flat sales in Q2 compared with Q1. Kao also said that Foxconn’s net profit are likely to come under pressure in the first six months of this year.
Foxconn’s revenue slump will likely further drive speculation that some disappointing results may be in store when Apple reports Q2, 2013 earnings on April 23. The consensus forecasts call for Cupertino to post EPS of $10.13 on revenues of $42.7 billion. In the most recent holiday quarter reported on Jan. 24, Apple posted EPS of $13.87 on revenues of $46.33 billion.
Apple’s price-per-share is down 18% ytd. Pre-market: $436.06, up 37 cents/ Apr 11, 4:54 am EDT. Current market cap: $409 billion.