https://wccftech.com/foxconn-well-below-forecast-on-rising-operating-costs-shares-fall/

Foxconn (TPE:2354) today reported a net profit of T$17.49 billion ($567.25 million) which was a full 20% short of what analysts predicted and slightly below the year prior’s results. Foxconn, also known as Hon Hai Precision Industry Co, is the world’s largest electronics manufacturer, announcing just a year ago that they would be building a factory in the United States in Wisconson.

The major problem would be that analysts are concerned about a loss of momentum in the smartphone market on a global level, primarily because the last year was the first year that smartphone sales weren’t as high as the previous. The reason profits are down is internal investment soared 18.8% this last quarter. “Investment in factory automation and component price hikes capped gross margin,” said analyst Arthur Liao of Fubon Research. This, as well as an investment in the United States, was likely to hit them in their net profits.