FIH Mobile Limited: history, ownership, mission, how it works & makes money

A Brief History of FIH Mobile Limited

FIH Mobile Limited, a subsidiary of Foxconn Technology Group, was founded in 2015. The company primarily focuses on manufacturing mobile devices and related components. In 2016, FIH Mobile was listed on the Hong Kong Stock Exchange under the stock code 2038.HK.

On October 21, 2016, FIH Mobile generated approximately HKD 3.88 billion (about USD 500 million) in revenue from its initial public offering (IPO). The IPO was significantly oversubscribed, underscoring investor interest in the mobile manufacturing sector.

In 2017, FIH Mobile reported a total revenue of USD 9.1 billion, representing a year-on-year growth of 35%. The company attributed this growth to increased demand from global smartphone brands, including its major client, Microsoft.

By 2019, FIH Mobile expanded its portfolio, offering services such as research and development, supply chain management, and logistics. The revenue for the fiscal year 2019 reached approximately USD 11.4 billion, with a net profit margin of 3.7%.

In 2020, amid the COVID-19 pandemic, FIH Mobile faced challenges like supply chain disruptions. The company reported revenue of around USD 10.5 billion, a decrease of 7.9% compared to the previous year. Nevertheless, FIH Mobile’s adaptability allowed it to maintain a net income of approximately USD 395 million.

As of 2022, FIH Mobile continued to be a key player in the mobile industry, reporting a revenue of USD 12.2 billion. The company expanded its operations into electric vehicles and smart home devices, positioning itself in emerging technology sectors.

FIH Mobile continues to evolve in a highly competitive market, embracing technological advancements and diversifying its product offerings to adapt to consumer trends and preferences. The company's strong financial performance over the years demonstrates its resilience and capacity for growth.

A Who Owns FIH Mobile Limited

FIH Mobile Limited is a publicly traded company listed on the Hong Kong Stock Exchange under the ticker symbol 2023.HK. As of the latest financial report in June 2023, FIH Mobile operates in the mobile phone manufacturing sector, primarily focusing on providing original design manufacturing (ODM) services.

Ownership of FIH Mobile is largely concentrated among a few key stakeholders. The majority shareholder is Foxconn Technology Group, which owns approximately 62.61% of the company's shares. This significant stake provides Foxconn considerable influence over the operational and strategic decisions within FIH Mobile. Other notable institutional investors include:

As per the annual report released in August 2023, FIH Mobile reported total revenues of approximately $1.18 billion for the fiscal year ending March 2023, reflecting a year-over-year increase of 7.5%. The company attributed this growth to increased demand for its ODM services, especially in the smartphone sector.

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the same period stood at $150 million, representing an EBITDA margin of approximately 12.7%. These figures indicate the company’s operational efficiency and ability to generate profit from its core operations.

FIH Mobile has also been actively involved in various strategic partnerships to enhance its manufacturing capabilities and expand its market reach. In Q2 of 2023, the company announced a partnership with a leading technology firm, enhancing its ability to produce innovative smartphone models.

FIH Mobile, through Foxconn, holds a strategic advantage in the competitive landscape of mobile manufacturing, leveraging significant resources and technological expertise to maintain its position as a leader in the ODM market.

FIH Mobile Limited Mission Statement

FIH Mobile Limited operates within the telecommunications sector, primarily focusing on manufacturing mobile devices. The company was established as a subsidiary of Foxconn Technology Group, known for its extensive capabilities in electronics manufacturing. The mission statement of FIH Mobile is centered around delivering innovative, high-quality mobile communication devices while maintaining sustainability and efficiency in production.

As of the latest fiscal reporting period, FIH Mobile reported revenues of $2.89 billion for the year ending December 2022, showing a year-over-year growth of 11.5%. This growth is attributed to increased demand for smartphones and other mobile devices, driven by advancements in technology and consumer preferences.

Furthermore, FIH Mobile emphasizes its commitment to sustainability in manufacturing. The company's initiatives have led to a reported reduction in carbon emissions per unit produced by 15% over the last three years. This is part of a broader strategy to decrease environmental impact while providing quality products.

Key Components of the Mission Statement

• Innovation: Continuous improvement and development of new technologies.
• Quality: Commitment to high standards in manufacturing processes.
• Sustainability: Focus on eco-friendly practices and reducing carbon footprints.

In line with its mission, FIH Mobile has established various operational goals to ensure alignment with market demands and consumer expectations. For instance, in its latest quarterly report (Q2 2023), the company achieved an operating margin of 5.8%, reflecting its effective cost management strategies alongside revenue growth.

Fiscal Year	Revenue (in Billions)	Year-over-Year Growth (%)	Operating Margin (%)	Carbon Emission Reduction (%)
2020	2.46	N/A	3.5	N/A
2021	2.58	4.9	4.0	N/A
2022	2.89	11.5	5.5	15
2023 (Q2)	1.52	7.7	5.8	N/A

The company's strategic partnerships with key technology providers further bolster its mission. For example, collaborations with leading chip manufacturers have enabled FIH Mobile to enhance its product offerings, contributing to a reported market share increase in the mid-range smartphone segment to 12% as of mid-2023.

Through these efforts, FIH Mobile Limited is not only driving growth but also reinforcing its established mission to lead in the mobile device industry while embracing sustainable practices. The company's sustained investments in R&D, which accounted for approximately 6% of the total revenue in 2022, reflect a commitment to innovation that aligns with its mission statement.





How FIH Mobile Limited Works

FIH Mobile Limited is a prominent player in the global mobile manufacturing and assembly sector, primarily serving as a subsidiary of Foxconn Technology Group. Its operations are centered around the design, manufacturing, and assembly of mobile devices for various clients, including some of the world’s leading smartphone brands. The company operates several manufacturing plants across regions, including China, India, and Vietnam.

As of Q3 2023, FIH Mobile Limited reported revenue of **$2.2 billion** for the first half of the fiscal year 2023, reflecting an increase compared to **$1.8 billion** in the first half of 2022. This growth was attributed to increased production capacity and expanding client demand.

The company is notable for its long-term contracts with major smartphone manufacturers, such as Xiaomi, Nokia, and others, which greatly influence its production volumes and financial stability. FIH Mobile Limited's assembly operations focus on high-volume production, where efficiency and speed are critical.

Financial Metric	Q2 2023	Q2 2022	Change (%)
Revenue	$1.1 billion	$900 million	22.22%
Gross Profit	$120 million	$100 million	20%
Net Income	$70 million	$55 million	27.27%

In 2022, FIH Mobile Limited's net profit margin stood at **6.2%**, showcasing its operational efficiency in a competitive landscape. Moreover, the company's earnings per share (EPS) for the fiscal year ending December 2022 was reported at **$0.45**, an increase from **$0.36** in 2021.

FIH Mobile Limited has been investing heavily in automation and advanced manufacturing technologies, aiming to enhance productivity and reduce operational costs. The shift towards automation is part of a broader strategy to compete effectively in the fast-evolving mobile market, where cost efficiency and quick turnaround times are paramount.

As of the latest financial reports, FIH Mobile Limited’s balance sheet reflects total assets of **$3.5 billion** and total liabilities of **$2.1 billion**, resulting in a debt-to-equity ratio of approximately **0.6**. This indicates a manageable level of debt relative to its equity base, allowing for flexibility in financial operations.

FIH Mobile Limited also emphasizes sustainable practices within its manufacturing processes. The company aims to reduce its carbon footprint and improve energy efficiency, aligning with industry trends seeking to meet environmental standards.

In terms of workforce, FIH Mobile Limited employs approximately **60,000** workers globally, with a significant portion dedicated to assembly line operations. Employee productivity has been a focus area, with training programs implemented to enhance skills in line with technological advancements.

The future outlook for FIH Mobile Limited appears positive, thanks in part to the ongoing demand for smartphones, particularly in emerging markets. The company anticipates a steady growth trajectory driven by its partnerships and adaptation to evolving consumer technology trends.





How FIH Mobile Limited Makes Money

FIH Mobile Limited, a subsidiary of the Foxconn Technology Group, generates revenue primarily through the manufacturing and assembly of mobile devices. The company's business model is largely focused on providing original design manufacturer (ODM) services to major global brands alongside diversification into other technology solutions.

The following key revenue sources contribute to FIH Mobile's profitability:

• ODM Services: FIH Mobile designs and manufactures mobile phones and related devices for brands such as Nokia and Xiaomi. In 2022, the ODM segment accounted for approximately 90% of the company's total revenue.
• Aftermarket Services: These include repair services and spare parts logistics. This segment brought in $187 million in revenue for the fiscal year ending December 2022.
• Intellectual Property Licensing: FIH maintains a portfolio of patents and licenses technology to other manufacturers. The company reported licensing revenue of $25 million in 2022.
• Increased Production Capacity: In response to demand, FIH Mobile expanded its production capacity by 20% from previous years, enabling handling of increased orders, contributing significantly to revenue growth.

Revenue Breakdown

FIH Mobile's ability to maintain strong relationships with major brands is a crucial component of its business strategy. This collaboration allows the company to leverage its manufacturing expertise and efficiency.

Moreover, market dynamics such as increased smartphone penetration, particularly in emerging markets, have positively influenced demand for FIH Mobile's products. The company is poised to benefit from continued growth in the mobile device market, projected to reach $600 billion by 2025.

In addition to hardware revenue, FIH Mobile is exploring avenues within software services and smart technologies, aligning with industry trends. This diversification strategy could enhance ongoing revenue streams, mitigating risks associated with reliance on ODM services alone.