...Hon Hai Precision Industry Co. Ltd. will no longer bear the losses for the production of new Nokia smartphone models from 2019 onward, having ended its Integration, Innovation, Design, Manufacture (IIDM) for Nokia branded phones. Hon Hai has also stopped the distribution of Nokia branded smartphones, thereby further lowering its exposure and working capital needs associated with the business. These changes have enabled Hon Hai's 62% owned subsidiary, FIH Mobile Ltd., to return to a net profit of US$20 million in the third quarter of 2019, against net losses of US$227 million in the same period of 2018. Nonetheless, the subsidiary's profitability is likely to remain under significant pressure due to intense price competition for electronics manufacturing services (EMS) of smartphones, particularly of the Chinese brands....
