Foxconn International Holdings (FIH), the Hong Kong-based handset arm of Foxconn Electronics, has reported net losses of US$316 million or US$0.043 per share on revenues of US$5.24 billion for 2012. In comparison, the company posted revenues of US$6.45 billion, net profits of US$73 million and an EPS of US$0.01 in 2011.
FIH attributed lower-than-expected performance in 2012 to changing handset ecosystem triggered by the austerity measures in Europe and global economic downturn, the rise of new services/applications centric business models, and the consolidation of the global handset industry.
The fierce market share struggles amongst global OEM brands and new entrants made the global handset EMS market difficult and caused pricing pressure for FIH's products in 2012.
Higher manufacturing overhead and increased cost pressure from rising labor costs and raw material prices also affected its gross margin, FIH added.
Meanwhile, FIH's board of directors has proposed to change the English name of the company from Foxconn International Holdings to FIH Mobile, said the company.
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