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

Against the backdrop of falling demand for mobile devices, Foxconn is rumored to intend to reduce production

Android smartphones and change priorities in favor of a different direction.


Nikkei Asian Review sources report that F.I.H.Mobile, Foxconn's smartphone division, posted a net loss of $857 million last year. The number of orders is decreasing, and many manufacturers, especially from China, cannot predict their sales and often reduce orders already during production. And if previously one team served several brands, now it’s the other way around: one brand has several teams of employees.

FIH Mobile is currently collaborating with Xiaomi, Google,HMD Global, Lenovo, Meizu, Sharp, Smartisan and other manufacturers. But sources say that only Google smartphones are making a profit. However, production volumes are not large enough to fully utilize the lines. And Xiaomi, although it is the largest customer, is not willing to pay a lot for the assembly, since it maintains the brand of one of the manufacturers with the cheapest smartphones.

Now what?

Of course, Foxconn won't give up completelyfrom the production of mobile devices, but orders and customers themselves will now definitely be chosen more carefully. According to rumors, the company intends to abandon cooperation with HMD Global, since Nokia smartphones are produced almost at cost.

Instead, Foxconn will direct its freed hands and heads to another, more profitable direction - automotive electronics.

We remind you that this only applies toAndroid smartphones. Cooperation with Apple continues, and just the other day Foxconn began producing iPhones in India. This will reduce their cost by up to 20% due to taxes imposed on goods upon import.