Foxconn falls deeper into the red

Foxconn, maker of the iconic iPhone, saw its value tumble yesterday after revealing another set of disappointing results.

Its stock fell almost eight per cent yesterday morning, its biggest single-day fall in 17 months, after reporting first-half earnings fell deeper into the red.

Foxconn recorded a January to June loss of $142.64m (£92.9m), far worse than the $18.7m loss it recorded a year earlier, hit by falling handset prices and higher depreciation costs.

Foxconn blamed the “difficult” and “volatile” handset market, as well as higher costs for the loss.

Analysts said yesterday it would take time for the group, which manufactures electronic devices for global brands including Apple, Dell, Nokia and Hewlett-Packard, to benefit from relocating its manufacturing facilities to inner China from higher cost coastal cities.

Shares in the Taiwanese company closed down 7.8 per cent to HK$5.13. At one stage, they fell as low as HK$4.98 – the lowest level since 22 July.