Hon Hai shares dip as its profit falls in first quarter

Shares of Hon Hai have dipped on the Taiwan Stock Exchange after it reported weaker-than-expected profits for the first quarter of 2012.
Its shares fell by as much as 7% in early trading.

On Saturday it said it made a net profit of NT$14.9bn ($511m; £314m) in the January to March quarter, compared with NT$35bn in the previous quarter.
Hon Hai, the world's largest contract electronics maker, has seen its costs go up amid rising wages.
The firm has also been building new factories in a bid to move its production to interior regions of China.
Contrasting fortunes
Hon Hai is the parent company of Foxconn which manufactures products for some of the biggest brands in the world including Apple.
Its results come just days after Apple said that its profits almost doubled in the first three months of the year.
Apple said it made a net profit came of $11.6bn (£7.2bn), up from $6bn in the same period last year and much better than analysts had expected.
The technology giant sold 35 million iPhones in the quarter, which was almost double the level of a year ago.
However some analysts said that despite the rise in the number of Apple products being sold, manufacturers such as Hon Hai had not seen a proportional benefit as profit margins on Apple's gadgets had been declining.


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