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Apple’s iPhone assembler Foxconn to cut costs for 2019 ahead of tough times

  • Smartphone demand has been slowing in China where consumers are waiting longer to upgrade their handsets

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Terry Gou, chairman of Foxconn Technology Group, speaks at a groundbreaking ceremony for the $10 billion Foxconn factory complex on June 28, 2018 in Mt. Pleasant, Wisconsin. Scott Olson/Getty Images/Agence France-Presse
Celia Chenin Shenzhen

Apple's iPhone assembler Foxconn Technology Group is cutting expenses for 2019 in anticipation of tougher conditions, according to a person familiar with the matter.

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The cost-cutting is part of the year-end exercise where different departments submit their budget estimates for the next year, the person said, asking not to be named as the information is private.

The Taiwan-based contract manufacturer, formally known as Hon Hai Precision Industry, aims to cut 20 billion yuan (US$2.9 billion) from expenses next year, Bloomberg News earlier reported, citing an internal memo.

“We regularly review our global operations to ensure that we are always applying our resources in a way that supports our operations, our customers' demands and critical research and development priorities while also meeting the needs of all areas of our company,” Foxconn said in a statement in response to queries.

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“These reviews enable us to meet our long-term responsibilities and commitments to our customers, our employees and business partners, and to our shareholders.”

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