Foxconn cuts growth targets

Sales growth targets halved as Apple demand fails to offset slowing computer sales
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Foxconn’s chairman and founder Terry Gou is to lower his company’s yearly growth targets from 30 per cent to 15 per cent.

According to Bloomberg, Gou said in an interview: “How many companies have grown this big and still grow 30 percent? Fifteen percent is also big.”

The revision has apparently come about after heightened demand for Apple products failed to compensate for a general decline in computer shipments and purchases. In addition, Foxconn’s stock price has fallen by 20 per cent so far this year.

Foxconn was rocked recently by a spate of worker suicides, but has also suffered the effects of a decline in consumer demand on the global PC market, which is expected to see growth slow to 12 per cent in 2011, from 18 per cent this year.

Foxconn is reported to be looking at two possible avenues for expansion. Gou is considering making acquisitions in the biotechnology sector, and is contemplating the benefits of a fully automated plant in the United States.

“If I can have automation in the U.S., then ship to China, the cost-price would still be competitive,” noted Gou.

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