iPad Assembler Hon Hai Falls To Four-Month Low

Assember of Apple's iPhone and iPad, Hon Hai Precision Industry, declined to its lowest level in nealy four months - falling 1.7 per cent, the lowest ever since 16th January.

Bloomberg reported the alarming news for Hon Hai investors, with the company experiencing poor profits.

Consolidated gross margin dropped to 6.64 per cent in the first three months of 2012, from 8.89 per cent at the end of 2011.

On average, analysts estimated Hon Hai would drop to 7.7 per cent, but the reality was far worse. At the end of April, Hon Hai announced unconsolidated earnings that missed analyst estimates by 31 per cent.

The operating margin in the first quarter of 2012 shrunk to 1.52 per cent on a consolidated level, compared to the previous quarter of 3.29 per cent. "Both metrics are the lowest since Hon Hai started posting consolidated quarterly data in 2008," concludes the Bloomberg report.

Hopefully over the next few months, the company might find a way to recover, after announcing that it woud be getting ready for Apple's HDTV orders.