Hon Hal Industries, known to most as Foxconn, reported that revenues were down over 18% over last year. Why? Because iPhone sales are reaching their peak.
This isn’t a time to get hysterical, but you can only say ‘the empire isn’t crumbling’ so many times before it’s actually rubble on the ground. When your largest and most profitable product category is getting soft, you know that you’re in troubled waters. In the case of Foxconn, nearly 60-70% of their revenue is dependent on Apple orders. When they scale back, Foxconn loses money.
With former iOS head Scott Forstall out at the company and the projects shepherded under Jobs’ watch now out in the open, it seems like a great time for Apple to give themselves a gentle reboot to bring people onboard. The lack of a new product line in three years isn’t helping things, though. Can you pull it off, Cook?