A downturn in quarterly profit was expected for Foxconn, especially after it became clear the company was facing some serious issues with the production of the iPhone X. But the 39 percent slide that Foxconn reported on Tuesday is far worse than most analysts expected. The world’s largest electronics manufacturer reported net profit fell to $700 million, or roughly 43 percent below the average estimates from analysts.
The well-documented delays were centered around the iPhone X’s FaceID system baked into that notch at the top of the display. The sensors and cameras packed into that area roughly resemble what was found in Microsoft’s Kinect system for the Xbox. The obvious difference though is that the Kinect was a much larger device, meaning Apple had to reduce it down to a size that could fit at the top of a smartphone—not an easy task.
Foxconn is believed to be the sole manufacturer of the iPhone X.