TAIPEI (Taiwan News) – Foxconn’s share price decreased by 2.03 percent to NT$67.70 (US$2.19) on the Taiwan Stock Exchange (TWSE) today, marking its lowest level in seven years, reported CNA.
The price tumble comes amid concerns over weak sales of Apple’s new iPhone models, and broader concerns over U.S.-China trade relations.
A total of 33.77 million Foxconn shares changed hands during trading today, with the share price closing at NT$67.70. Foxcon’s market capitalization also decreased from NT$957.7 billion to NT$938.3 billion.
Foxconn, one of the world’s leading electronic contract manufacturing companies, is reported to be responsible for assembly of the majority of the new iPhone models.
CNA reports that the company will assemble all iPhone XS units, 80 percent of iPhone XS Max units, and less than 50 percent of iPhone XR units.
Sales of the new iPhone have been weaker than expected, and has led to at least four Apple suppliers to reduce their revenue forecasts.
Last month, Foxconn confirmed it will embark on a cost cutting process next year. Bloomberg quoted an internal memo stating that 2019 will be “a very difficult and competitive year,” with the company planning to shed US$2.9 billion (NT$89.2 billion) in costs and around 10 percent of non-technical staff.
Foxconn also faces a broader array of problems, which include inconsistent demand for personal computers, and uncertainty pertaining to the U.S.-China trade war.
Foxconn’s decline comes amid a broader dip in the TWSE today, which fell by 1.16 percent. So far this year, the TWSE has decreased by 3.52 percent.
In response to this volatility, Wellington Koo (顧立雄), Chairperson of the Financial Supervisory Commission, said earlier today that slowdown in global economic growth has sapped the confidence of investors globally, reported Liberty Times.
Koo went on to say that he is optimistic about the fundamentals of Taiwanese stocks, and that they are well worth the investment.