Foxconn’s FIH Mobile warns of US$110m interim net loss over costs of Nokia handset deal

Foxconn subsidiary FIH Mobile, the top contract manufacturer of smartphones for Xiaomi, expects to record a net loss of about US$110 million for the six months to June 30, as the company is weighed down by its acquisition of Nokia’s old feature phone business.

In a regulatory filing after the market closed on Monday, FIH Mobile’s acting chairman Chih Yu Yang said the estimated loss would mark a 628 per cent decline from the company’s US$20.8 million interim net profit last year.

Chih attributed that substantial decline to “costs relating to a new business group within the company under a collaboration agreement announced on 18 May 2016”.

He pointed out, however, that FIH Mobile’s interim revenue this year is forecast to rise 99 per cent to US$4.6 billion, up from US$2.3 billion in the same period last year.

FIH Mobile is a subsidiary of Taiwan-listed Hon Hai Precision Industry, the world’s largest contract electronics manufacturer, known widely under its trade name of Foxconn.