The Foxconn manufactures electronic products for major smartphone and electronic companies worldwide. Foxconn functions with more than a million employees and it has the largest number of employees in China. Google, HMD and Xiaomi are notable companies that have contracts with Foxconn.
The smartphone industries are facing a hard time in the market and Foxconn has shown deflation in its orders the past years. The company must have decided to cease from its Android phone production after a massive loss of $857 Million which is the largest the company has lost.
The Foxconn has decided to redirect its engineers to other projects contemplating on the future of Electric Vehicles. New automotive projects of Foxconn are germinating and Electric Vehicles are at focus. Foxconn is much anticipated to invest in battery-powered cars as a new venture.
It is evident that the whole smartphone sector is dropping down so Foxconn is not the only one. Sony to reduce its employees by half while engineers will be transferred to new projects. The Sony launched its new flagship Xperia 1 at the MWC 2019. It’s been a month now and the launch did not receive any remarkable attention.
Samsung and Apple have also encountered a decline in profits in smartphones because it seems the smartphone industry has reached a saturation point. Low-price manufacturers and the decrease in upgrades stand as the key factors for the drop. There is a gradual decrease in year-over-year smartphone sale. This will compel out the smaller manufacturers out of the market.