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Apple designs and sells consumer electronics, computer software, and personal computers and also operates retail stores. Its best-known hardware products are Macintosh computers, the iPod, the iPad and the iPhone – Apple is the world’s third largest mobile phone-maker after Samsung and Nokia.

Margin erosion risks

Friday, 10 August, 2012, 3:13am

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Foxconn International Holdings highlighted competition and margin erosion risk on the eve of its initial public offering early this year.

'This is a very competitive industry,' Foxconn chairman and chief executive Samuel Chin Wai-leung said.

The mobile phone unit of Taiwan's Hon Hai Precision Industry, Foxconn manufactures mobile handsets for customers such as Motorola and Nokia.

Like many other handset manufacturers, Foxconn has been experiencing sharp declines in profit margins. It warned investors in its listing prospectus that it may experience a further decline in profit margins as a result of changes in product mix and competitors' price cuts.

Foxconn had seen its gross profit margins decline from 54.9 per cent in 2001 to 9.4 per cent for the nine months ended September last year.