Apple manufacturing partner Hon Hai reported lower sales in its most recent quarterly earnings report due to decreased demand for the iPhone, Reuters said Wednesday. The demand likely dropped off a bit as consumers take a wait-and-see approach as we enter the summer months when Apple typically announces its new device.
The company’s sales dropped to $26.9 billion during the quarter, a figure that’s well below sales in both Q4 2012 and Q1 2012. Unfortunately, for Hon Hai, it could be a reflection that the company is too focused on building Apple product—when Apple succeeds its sales do well, when Apple sales slow, Hon Hai sales slow.
“This shows that Hon Hai’s revenue depends too much on Apple, and iPhone orders corrected more than expected,” KGI Securities analyst Ming-chi Kuo told Reuters. The company reportedly earns as much as 70 percent of its revenue by taking orders from Apple.