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Foxconn: iPhone Demand Tough To Keep Up With

iPhone Manufacturer Struggling To Meet Demand
Reuters
FILE - In this Sept. 12, 2012 file photo, a new Apple iPhone 5 is on display following the introduction of new products in San Francisco. With unemployment painfully high, its not surprising that fears over outsourcing, which first surfaced in the mid-2000s, have returned. Unemployment topped 8 percent for 43 months from February 2009 through August 2012, the longest stretch since the Great Depression. It dipped to 7.8 percent in September. Also fueling fears is the decision by Apple and other high-tech companies to manufacture many of their goods in China. That suggests it isnt just low-skilled jobs in industries such as textiles that are being lost. (AP Photo/Eric Risberg, File)
FILE - In this Sept. 12, 2012 file photo, a new Apple iPhone 5 is on display following the introduction of new products in San Francisco. With unemployment painfully high, its not surprising that fears over outsourcing, which first surfaced in the mid-2000s, have returned. Unemployment topped 8 percent for 43 months from February 2009 through August 2012, the longest stretch since the Great Depression. It dipped to 7.8 percent in September. Also fueling fears is the decision by Apple and other high-tech companies to manufacture many of their goods in China. That suggests it isnt just low-skilled jobs in industries such as textiles that are being lost. (AP Photo/Eric Risberg, File)

TAIPEI (Reuters) - Taiwan's Foxconn Technology Group said on Wednesday the company's flagship Hon Hai unit is finding it difficult to cope with the massive demand for Apple Inc's iPhones.

"It's not easy to make the iPhones. We are falling short of meeting the huge demand," Foxconn Chairman Terry Gou told reporters after a business forum.

However, he declined to comment on brokerage reports saying that the group's other unit, Foxconn International Holdings (FIH), had taken on some production.

Hon Hai Precision Industry, the main listed entity of the parent Foxconn Technology Group, is the key assembler of Apple's iPhones.

The group also owns FIH, which traditionally assembles non-Apple products, such as phones from Nokia Oyj and Huawei Technologies Co Ltd.

Shares of Foxconn International Holdings Ltd (FIH), the world's biggest contract maker of cellphones, surged as much as 35 percent on Monday after Citigroup upgraded the stock to a 'buy' and said it expected the firm to start assembling iPhones this year.

Shares of FIH fell 5.7 percent in Hong Kong on Wednesday, while Hon Hai was up 0.6 percent in Taipei. (Reporting by Clare Jim and Lee Chyen yee; Editing by Anne Marie Roantree)

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