Handset manufacturer FIH Mobile Ltd's first-half losses widened on Friday due to bleak demand from smartphone vendors and said it will closely monitor escalating Sino-US trade tensions.
FIH Mobile, a unit of Taiwan's Foxconn, the trading name of Hon Hai Precision Industry Co, widened its net loss to $348.1 million (roughly Rs. 2,400 crores) in the first half from $196.9 million (about Rs. 1,360 crores) a year ago, the company said in a statement to the Hong Kong stock exchange.
The company, which is grappling with weak demand from Chinese smartphone vendors, including Xiaomi, said shipments growth has hit a ceiling and it expected intense competition to affect its revenues and margins.
"Although there are still opportunities from consumption upgrades and industrial innovation, the risk of saturation in the smart phone market remains high," it said in the statement.
The company also said it will closely monitor the impact of the growing trade conflict between China and the United States.
According to market research firm IDC, the Chinese smartphone market shipped 105 million units in the second quarter, a 5.9 percent drop from a year earlier.
© Thomson Reuters 2018