Business

Foxconn losses narrow to $17.65m

iPhone 4 display
Image caption Foxconn said its priority was to develop new customers and to excel in the smartphone market

Foxconn International, which assembles products including Apple's iPhone, has seen its half-year losses narrow to $17.65m (£10.75m).

Although it marked an improvement on the $143m loss suffered in the first six months of 2010, it was the third successive half-year loss for the firm.

Some analysts believe the company could make a profit next year, if key clients improve their product mix.

About 70% of Foxconn's revenue comes from Nokia and Motorola.

However Nokia has been losing share in the mobile handset market to rivals Huawei Technologies and ZTE, which has had a knock-on effect on Foxconn.

Worker suicides

Foxconn has also struggled with a series of problems, including rising costs, worker unrest, a fatal explosion at a Chinese factory and a series of suicides by employees in China.

The company was criticised by the Hong Kong stock exchange in June for failing to issue a profit warning despite knowledge of its weak performance in 2008.

Foxconn International's shares were subsequently removed from the market's benchmark Hang Seng Index.

Foxconn's stock has lost more than a third of its value so far this year.

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