Shares of Foxconn International have plummeted after the world’s biggest contract maker of mobile phones posted its worst-ever first-half net loss due to low orders.
The company’s share price fell 3.5 percent after investors gave it a thumbs down for poor performance. Foxconn announced that it lost $226 million for the January to June period, compared to a loss of $18 million a year earlier.
This might appear strange as most analysts and the IT press have been claiming that mobile phone use is soaring at the expense of the PC. Foxconn International’s parent company is expected to do better, it has key customers in this mobile boom such as Apple.
The company said that global demand for mobile phones has slowed and prices of smartphones have ground to a halt. Again the slowing global economy was blamed.
The company said in its earnings report that challenging economic conditions around the world may continue to cast uncertainties on its business. It said that the company remains cautious over the future handset market conditions in 2012.
This is bad news for Microsoft and Nokia who are hoping that they will be flooded with orders for their new Windows 8 smartphones.