Bloomberg posted a report yesterday titled "Hon Hai Profit Disappoints as Sales Sag Ahead of New iPhone." The report pointed to "possible delays in mass production" of the iPhone 8 for the poor quarterly results. The report further noted that most smartphone growth is coming from Chinese vendors like Oppo and Huawei who aren't Foxconn clients. In reality Bloomberg's headline was misleading and contrary to the facts that a new report sheds light on this morning.

The Nikkei Asian Review reports today that the reason for Foxconn's lackluster quarterly results was directly due to a subsidiary incurring heavy losses from investments in Nokia's feature phone business and India's e-commerce startup Snapdeal – and nothing to do with Apple or iPhone delays.

More specifically Foxconn's subsidiary FIH Mobile which is responsible for making mobile handsets for Foxconn's non-Apple customers and the group's brands Nokia and Sharp, said in a statement that it lost about $162.5 million from its $200 million investment in Snapdeal. It did not reveal the exact amount of losses in the Nokia business.

Foxconn's iPhone sales are stable and they're likely to benefit from expected higher prices for the premium iPhone 8 with OLED displays compared to those using LCDs.

At the end of the day, it's evident that Bloomberg jumped the gun with a negative byline making it sound like Foxconn's poor quarter rested with Apple when in fact it most certainly did not.

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