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Apple iPhone Supplier Foxconn Planning Deep Cost Cuts

  • Foxconn aims to slice almost $3 billion from expenses in 2019
  • Cost moves set to add to gloom surrounding demand for iPhones
Bloomberg business news
Bloomberg Opinion columnist Tim Culpan discusses Foxconn’s plan to cut $2.9 billion from expenses in 2019. (Source: Bloomberg)
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Foxconn Technology Group, the biggest assembler of iPhones, became the latest Apple Inc. supplier to warn of anemic demand, with an internal memo suggesting that expenses will be cut by almost a half next year.

The contract manufacturer aims to cut 20 billion yuan ($2.9 billion) from expenses in 2019 as it faces “a very difficult and competitive year,” according to an internal document obtained by Bloomberg. The company’s spending in the past 12 months is about NT$206 billion ($6.7 billion). The shares of Hon Hai Precision Industry Co., as Foxconn is known in Taiwan and Asia, rose less than 1 percent in early trade in Taipei on Thursday.