Foxconn records 218M fullyear net loss for 2010

first_imgFoxconn, a company that manufactures products from motherboards to the ever-so-popular iPhone, announced in a press release today that it lost about $218 million this past year. That’s a lot of money and a surprise for a company manufacturing parts for one of the most popular smartphones and tablets on the market today.The company said 2010 was an “extremely difficult year” for them. There were major changes in the mobile ecosystem thanks to new players, software and applications, and the introduction of new business models. Foxconn’s revenue for 2010 was $6.63 billion, which is 8.2 percent less than the prior year’s $7.21 billion.AdChoices广告Foxconn said the “intensifying market share struggles among global OEM brands” had made it hard for the global handset EMS market due to pricing pressure for Foxconn’s products.These alarming figures have lit a fire at the company to make some changes. Foxconn said it needs to change as the market and its customers are changing. Selling its Taiyuan legal entity will hopefully help in reducing costs. Still, Foxconn says that as smartphones become the mainstream of the market, it’s still in a leading position in the marketplace thanks to its end-to-end solutions.If Foxconn continues making parts and building products for Apple, it will most likely be in an okay place. But, will this year’s loss effect Apple in any way? We know that Foxconn said last week that it had enough components stockpiled to continue building the iPad 2 for a few more weeks, but could there be changes in the future with who helps manufacture Apple products?Read more at the Foxconn press release (PDF)last_img read more