Foxconn cuts Android-smartphone production: what about Xiaomi, Nokia and Google Pixel?

Amid falling demand for mobile devices, Foxconn is rumored to cut production.

Android smartphones and change priorities in favor of another direction.


Nikkei Asian Review sources report that FIHMobile, a division of Foxconn, which is just engaged in the assembly of smartphones, last year a net loss of $ 857 million. The number of orders is reduced, and many manufacturers, especially from China, cannot predict their sales and often reduce orders already during production. And if earlier one brigade served on several brands, now it is the opposite: one brand accounts for several teams of employees.

Now FIH Mobile collaborates with Xiaomi, Google,HMD Global, Lenovo, Meizu, Sharp, Smartisan and other manufacturers. But sources say that only Google’s smartphones make a profit. However, production volumes are not so large as to fully load the lines. And though Xiaomi is the largest customer, it is not ready to pay a lot for the assembly, as it keeps the brand of one of the manufacturers with the cheapest smartphones.

Now what?

Of course, Foxconn will not completely refusefrom the production of mobile devices, but orders and customers themselves will now definitely choose more thoughtfully. According to rumors, the company intends to refuse to cooperate with HMD Global, since Nokia smartphones are produced almost at cost.

Instead, Foxconn will send freed hands and heads to a different, more profitable direction - automotive electronics.

We remind you that this only appliesAndroid smartphones. Cooperation with Apple continues, and just the other day Foxconn began production of the iPhone in India. This will reduce their cost by up to 20% due to taxes levied on goods during import.