Foxconn February 24

AAPL: 96.10

1.41
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Update: The WSJ reports that the deal is not yet certain. Sharp may come with some potential financial risks, which Foxconn is evaluating before it actually signs the deal.

Foxconn Technology Group said Thursday it is delaying the signing of a definitive takeover agreement with Sharp Corp. due to new details that the Japanese electronics maker disclosed a day earlier.

Foxconn didn’t elaborate in its statement, but people familiar with the matter said that the Taiwanese iPhone assembler is putting the Sharp deal on hold after reviewing the Japanese firm’s future financial risk. The people said Foxconn received a list of about ¥350 billion yen worth of “contingent liabilities” from Sharp on Wednesday.

Contingent liabilities are costs that a company might face in the future, based on the outcome of lawsuits, accounting changes, supply contracts or other uncertainties.

Last month it was reported that Apple manufacturer Foxconn had bid $5.3 billion to acquire Japanese display maker Sharp, who has faced numerous financial and manufacturing difficulties over recent years. Now, Japanese news outlet Nikkei Asian Review reports that Sharp has accepted an offer from Taiwan’s Hon Hai Precision Industry, better known as Foxconn, for $6.2 billion.

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Foxconn February 16

AAPL: 96.64

2.65
Stock Chart

9to5Mac most recently reported Apple is planning to launch its new addition to the iPhone lineup on March 18th, a 4-inch ‘iPhone 5se’. Foxconn is leading production of the phone, as it does with most iPhone units. Digitimes is reporting that Apple is adding a new supplier to the mix to aid supply: Wistron.

Naturally, Wistron declined comment as 4-inch iPhone production is still a supposed secret. According to Digitimes, Apple is aiming to lower supply channel yield risks by contracting with multiple suppliers for iPhone models. This strategy will continue with iPhone 7 ….

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Foxconn January 25

AAPL: 99.44

-1.98
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9to5toys 

Foxconn January 21

AAPL: 96.30

-0.49
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Foxconn January 6

AAPL: 100.70

-2.01
Stock Chart

[Update 2Reuters reports that Foxconn has published an earnings report showing a 20% fall in December revenues. However, the company says that its December earnings were “as expected,” and its full-year earnings are up 6.42% on the previous year, only marginally short of analyst expectations of 7%.]

[Update 1: StreetInsider reports that Foxconn has denied reports that workers started their lunar new year holiday early, and says that the government payout relates to ‘an insurance premium,’ but makes no reference to any response to the claim that it has been laying off workers.]

The WSJ is today suggesting that Apple is scaling back iPhone orders, noting that iPhone manufacturer Foxconn has been laying off workers and has received a $12.6M subsidy from the Chinese government through a program designed to minimize unemployment.

The piece notes that the subsidy is for Foxconn’s Zhengzhou plant, which is mostly devoted to iPhone production, and says that Apple has also reduced order forecasts for iPhone component makers.

Chinese iPhone factories had some idle capacity in the final two months of the calendar year, when they would typically be racing to chongliang, or “rush quantity,” for Apple, in factory-speak. Some workers at Foxconn’s Zhengzhou factory in inland China were let go on early holiday last month, one of the people involved in the supply said, although the typical new-year holiday season doesn’t start until February.

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Foxconn October 14, 2015

AAPL: 110.21

-1.58
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