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Report: Foxconn slashing iPhone business costs

A worker on a factory line at the Foxconn plant in Shenzen
A worker on a factory line at the Foxconn plant in Shenzen in 2010. Photo: Voishmel/AFP/Getty Images

Foxconn, the biggest assembler of iPhones, wants to cut $2.9 billion in expenses next year — including cutting costs and shrinking "non-technical staff" by 10% within its iPhone business — citing a "very difficult and competitive year," according to an internal memo obtained by Bloomberg.

Why it matters: This follows a string of reports about Apple's suppliers cutting their financial outlooks, plus Apple reportedly cutting iPhone production orders, fueling concerns about weaker demand for Apple's flagship product. In its most recent earnings report, Apple said it would no longer break out unit sales for its iPhones and iPads.

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