Tencent Technology News, earlier, the United States Apple announced a disappointing first-quarter earnings, the battalion received a large drop in profits, and the smartphone revenue also fell.
The performance of the Apple mobile phone business is smashing the upstream supply chain. According to the latest news from foreign media, Apple Mobile OEM Foxconn Group and screen supplier Japan Display Corporation (JDI, hereinafter referred to as “Xi Xian”) announced disappointing financial results this week due to Apple’s mobile phone sales. The direct impact of slowing down.
According to foreign media reports, in the first quarter of 2019, the Foxconn Group's net profit fell 17.7% to 637.26 million US dollars. This profit is also lower than the average expected value of Wall Street analysts.
Hitachi said on Wednesday that sales of mobile phone displays, which accounted for 73.3% of its total sales, fell 17.2% year-on-year. The company blamed sales declines on high-end phones that use OLED screens instead of traditional LCD screens (Nikkei is not a large-scale mobile OLED screen maker).
Among the factors affected by the performance, Nisshin also pointed out that “the slowdown of the smartphone market in China and the world” and “the extension of the smartphone usage cycle”. According to reports, the company has asked 1,000 employees to retire early at the end of the second quarter.
The reason for the slowdown in global mobile phone sales is the rise in mobile phone prices. With the price of high-end mobile phones exceeding $1,000, consumers have been holding their smartphones for longer.
Toni Sacconaghi, an analyst at Bear Stearns Research Inc. in the United States, said in February that Apple's mobile phone users have been holding mobile phones for three or four years. IDC, a veteran technology market research company, said in February that 2018 was the worst year for smartphone sales, with shipments dropping 4.1%.
In the earnings report, Apple has stopped publishing specific sales data for electronic products such as smartphones. However, according to IDC's report, in the first quarter of this year, Apple's smartphone sales in the world fell by 30%, and the decline was surprising. Excessive prices are considered an important reason.
Apple's Apple phone may not be much cheaper in the future. Earlier this week, JPMorgan Chase Bank said in a research report that unless Apple bears its own costs, Apple will need to increase the cost of smartphones by 14% to offset the impact of subsequent tariffs.
In order to offset the impact of the slowdown in sales, Apple increased its focus on the Internet service business, launched a new magazine subscription service, and Apple also released a paid online video service, which will be launched at the end of the year. In Apple's earnings report, in addition to the decline in sales of almost all hardware products, Internet services have become the highlight of Apple's performance.
In the first quarter, Apple's sales revenue was US$58 billion, down 3% year-on-year, and profit was US$11.6 billion, down 16% year-on-year.
According to statistics, Apple's mobile phone sales began to decline after 2016, and today's decline has intensified. Under the influence of this factor, Nisshin reported a net loss for the ninth consecutive quarter in the first quarter, and the company's fiscal year ending in March 2018 was the company's fifth consecutive year of losses.
As Apple's demand fell, the company's first quarter (natural quarter) loss was 98.6 billion yen ($892.22 million).
According to foreign media reports, the company's loss last year was close to 109.4 billion yen, close to 1 billion US dollars.
Nisshin also announced that it will write down a $68 million (75.2 billion yen) asset for one of its display panel plants.
Just recently, it was reported that the Japanese government is reconsidering the provision of US$729.3 million in aid to the company. A consortium of mainland and Taiwanese companies was originally scheduled to invest in the company in June this year, but is currently reviewing the company's expected results.
According to reports, the company has obtained some OLED screen orders from Apple, which is believed to be used for Apple Watches. (Tencent Technology Review / Cheng Hao)