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(Reuters) - Apple Inc’s biggest iPhone assembler Foxconn aims to cut 20 billion yuan ($2.88 billion) from expenses in 2019 as the company faces “a very difficult and competitive year”, Bloomberg reported on Wednesday, citing an internal memo. The Taiwan-based producer said in a statement it was conducting a regular annual review to budget effectively for 2019, but it was also the latest to point to concerns over demand for Apple’s flagship devices. Shares in Apple, at the heart of this week’s brutal sell-off on Wall Street, were up 1.2 percent at $179.13 in a broadly steadier market.

They have fallen nearly 9 percent since Nov, 12 when one of its facial recognition suppliers, Lumentum Holdings Inc, cut its outlook for the holiday quarter, Shares in Foxconn, formally known as Hon Hai Precision cufflink shirts online Industry Co Ltd, closed down less than 1 percent at T$70.60, Apple shocked investors earlier this month with a lower-than-expected sales forecast for the Christmas quarter that jolted parts suppliers across the world, U.S, chipmaker Lumentum was among the first to cut forecast along with screen maker Japan Display, followed by financial warnings from Qorvo Inc, British chipmaker IQE and Austria’s AMS..

Foxconn's iPhone business will need to reduce expenses by 6 billion yuan next year and the company plans to eliminate about 10 percent of non-technical staff, the Bloomberg report here said. Foxconn said it regularly reviews its operations to reallocate resources across its operations. “The review being carried out by our team this year is no different than similar exercises carried out in past years.. (to ensure we are) aligned with the current and anticipated needs of our customers, our global operations and the market and economic challenges,” it said in the statement.

Foxconn posted a weaker-than-expected rise in quarterly profit last week, Japan’s Nikkei daily reported earlier this month that Apple had told Foxconn and rival Pegatron Corp to halt plans for additional production lines dedicated to the iPhone XR, Sector analysts estimate that Apple cut orders to its Taiwanese suppliers by 20-30 percent earlier in November, mainly because of weak cufflink shirts online demand for the iPhone XR and XS Max, Apple started selling its higher-priced iPhone XS and XS Max in September and the XR model last month..

LONDON (Reuters) - Europe’s biggest low cost airline Ryanair (RYA.I) is not seeing any impact from Brexit on demand for flights, and is prepared for a no-deal, chief marketing officer Kenny Jacobs said. Ryanair was not interested in buying British regional airline Flybe FLYB.L, which put itself up for sale last week, he added in a press conference on Wednesday. He reiterated comments that Ryanair, which has been hit by a series of strikes this year, would come to agreements with unions in its main markets before the end of March.

The comments on Brexit from the Irish airline echo what smaller British rival easyJet (EZJ.L) said on Tuesday, about it being prepared for a no-deal scenario, and the uncertainty over Britain’s future relationship with the European Union having no impact on ticket sales, “The demand that’s out there..is really, really strong, The European consumer, the British consumer just continues to book,” Jacobs said, Ryanair’s chief executive Michael O’Leary has in the past warned that a disorderly Brexit could ground flights for a number of weeks after the UK cufflink shirts online leaves on March 29, but after reassurances on flying rights provided by the EU last week, that is no longer a risk, said Jacobs..

“If we’re in a no-deal Brexit situation, flying will be fine,” he said. The action Ryanair will have to take if there’s no deal will be to comply with EU ownership rules. Once the UK is no longer part of the EU, the 20 percent of Ryanair shares owned by British investors will be treated differently, Jacobs said. He repeated the airline’s plan of restricting voting rights for UK shareholders, adding that Ryanair’s board and the EU had both already approved the plan.

Like easyJet, Ryanair ruled out an interest in buying Flybe, a smaller operator which is looking for a new owner after warning that profits would be lower than expected due to recent rises in the fuel price, “We’re not interested in Flybe,” Jacobs said, “It’ll probably be split up and you’ll probably get a few different airlines buying the various assets.”, Ryanair’s plan was predominantly for organic growth, he said, Referring to a wave of strikes this year which has meant thousands of canceled Ryanair flights and which it has said will dent profits, Jacobs said the airline was on track to reach agreements with its biggest cufflink shirts online unions..

 

 
 
 

 

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