Billionaire Terry Gou, chairman of the Foxconn Technology Group, right, listens as Scott Walker, Governor of Wisconsin, on Wednesday, July 26, 2017, during an event in the East Room of the White House in Washington, DC, USA , speaks .
Andrew Harrer | Bloomberg | Getty Images
Foxconn and Japan Display reported disappointing financial results this week as the impact of another slowdown in iPhone sales in Apple's supply chain becomes apparent.
Foxconn reported a 1
Japan Display announced Wednesday that mobile display sales, which accounted for 73.3% of total revenue, decreased 17.2% year-over-year. Japan Display threw down sales to customers who switched to OLED screens in their flagship phones instead of traditional LCD screens. It also pointed to the "slowdown in the Chinese and global smartphone market" and the "extended life cycle of smartphones". Japan Display requests 1,000 employees to retire prematurely at the end of the second quarter.
The worldwide decline in telephone sales is due to rising telephone costs. Premium phones, for example, now cost more than $ 1,000, and customers hold devices longer in their hands. Bernstein's Toni Sacconaghi said in February that iPhone owners have been hanging over the phone for three or four years now. Market research firm IDC announced in February that with deliveries down 4.1% in 2018, it was the "worst year ever" for smartphone sales.
Apple iPhones will probably not be much cheaper in the future either. Earlier this week, JP Morgan said Apple had to increase the cost of iPhones by 14 percent to make up for the next bargaining round, unless the costs were borne by Apple itself. Focussing more on the service business with a new premium subscription offering for Apple News + , a new platform for Apple TV channels launched this week, with a greater reduction in subscription revenues for services such as HBO and Showtime, as well as an Apple TV + library of originals, allowing content to be released this fall.