Foxconn's problems with iPhone X assembly could hit holiday availability

The world's largest contract electronics manufacturer said its third-quarter net profit tumbled to $700m

The world's largest contract electronics manufacturer said its third-quarter net profit tumbled to $700m

Foxconn earnings in the third quarter largely relied on iPhone X output as it shared production of the iPhone 8 with other assemblers like Pegatron.

The 10th anniversary version of iPhone has seen parts suppliers struggle with specifications for new features such as facial recognition and edge-to-edge display.

Apple has predicted strong Christmas sales and said it is happy with how manufacturing of the iPhone X is progressing, although most analysts think it will likely take until next year or early spring for the tech giant to meet demand.

The company, which is known as Hon Hai Precision Industry and is an electronics contract manufacturer, had a net profit of 21 billion New Taiwan dollars (about US$695.5 million) in the latest quarter, much lower than the NT$35.6 billion that analysts had estimated, The Wall Street Journal reported.

It was Foxconn's first quarterly decline in a year and marked its biggest profit drop for a quarter since at least 2009.

Foxconn is now the sole assembler of iPhone X, but the lack of parts meant it was unable to meet requirements.

Demand for iPhone X is undeniably strong and it appears numerous supply issues have also been resolved, although iPhone X is still backordered up to 4 weeks for new Apple Store online orders.

Apple's numbers show that 46.7 million iPhone units were sold during the recent quarter, topping analyst estimates of 46.4 million units.

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