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Key Takeaways:
FIH Mobile returned to the black in 2025 with a profit of $53 million, reversing a loss the previous year
The smartphone arm of Taiwanese electronics giant Foxconn is facing a major new challenge this year from soaring memory chip prices
Years after they were first introduced, smartphones have shown rapid signs of aging. That's presenting challenges for leading brands, as better quality and slowing technological advances mean the average consumer replacement cycle has grown from 18 to 24 months in the past to a current average of 33 months. The end result for manufacturers has been a ramping down of growth, which stood at an anemic level of less than 3% last year.
Despite stagnating industry sales, FIH Mobile Ltd. (2038.HK), a leading contract manufacturer of mobile phones, impressed investors this month with annual results showing it returned to the black last year. How long it can stay in the black remains an open question, however, as prices for memory, a key phone component, remain stubbornly high amid a global shortage.
Focus on non-Apple devices
Established in May 2003 and listed in Hong Kong two years later, FIH Mobile is a subsidiary of Taiwan's Hon Hai Technology, also known as Foxconn. Hon Hai ranks first globally in the electronics manufacturing services (EMS) sector with a dominant market share exceeding 40%. Within the Hon Hai empire, FIH Mobile focuses on mobile phones, specifically targeting models developed by companies other than iPhone maker Apple.
Benefiting from increased shipments to a major customer, FIH's revenue rose 16.7% to $6.66 billion last year. That rise, combined with termination of unprofitable and low-margin businesses, helped lift FIH Mobile to a net profit of $52.73 million for 2025, reversing a $20.31 million loss in 2024.
The turnaround stemmed not only from dumping unprofitable operations but also the company's strategic decision to focus more on higher value-added products. Concurrently, it shifted its customer and product portfolios towards automotive electronics, production line equipment, and ...
