Foxconn labour cost increases cause gross margin down 1H10

Foxconn have been in the press for all the wrong reasons lately and yesterday they announced their revenues and profits for the first half of 2010.

While their revenues for the first half of 2010 went up by 47.6% on year ($36.5 billion) their gross margins were down 0.99 pp on year to 8.35%.

Q2 showed their revenues growing by 20.14%  on quarter but their decline in gross margin from 8.65% to 8.11% caused a sequential profit drop of 4.2%. Much of this loss is being weighed into the increase of labour and component costs.

KitGuru says: Foxconn are still making efforts to expand however as they have invested around $74 million US into various areas in the last year.

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