In what’s likely foreshadowing pain for all tech hardware companies, Foxconn, the biggest assembler of iPhones and many other electronics, is planning huge cuts because of softer iPhone demand, according to Bloomberg.
Bloomberg got its hands on an internal document showing the contract manufacturer plans to cut costs by nearly $3 billion next year because it will be a “a very difficult and competitive year.”
Apple’s been able to weather the slowing sales volume by ramping up prices – an option its suppliers don’t have and they’re showing the pain.
But there’s another question. Software companies have also benefited from the rise of iPhone users, who tend to generally spend more on apps and other online services. Could Foxconn’s problems spill beyond hardware?