BEIJING— Foxconn Technology 2354 -3.59% Group, the world’s largest contract manufacturer of electronics, posted a 39% drop in quarterly net profit amid production challenges dogging the flagship product of its biggest customer, Apple Inc.
Apple’s iPhone X, which Foxconn assembles in China, went on sale Nov. 3, after it was plagued by a series of production problems among Apple’s suppliers.
The troubles were centered on new technologies packed into the device, the most expensive iPhone ever, with a starting price of $999 and features including an edge-to-edge display and facial recognition.
Taiwan-based Foxconn, known formally as Hon Hai Precision Industry Co. 2317 -0.93% , posted 21 billion New Taiwan dollars (about $695.5 million) in net profit in the three months to September, its statement showed Tuesday.
That was lower than the NT$35.6 billion average estimate of analysts polled by the S Global Market Intelligence.
The 39% decline in profit from the same period a year earlier was Foxconn’s largest drop since 2008, during the global recession, according to data from SQuarterly revenue in the latest period was NT$1.1 trillion, nearly flat from a year before.