(Yicai Global) Nov. 15 -- Hon Hai Precision Industry Co., [TSE:2317], better known as Foxconn, reported declining profits in its third quarter financial report released yesterday, suggesting Apple Inc.'s [NASDAQ:AAPL] iPhone X hasn't yet been of benefit to the supplier.

During the third quarter, net profit attributable to its parent company was down 39.29 percent on the year at TWD21.03 billion (USD697 million). Its net profit margin in the third quarter dived to 1.95 percent, knocking more than a third from its 3.22 percent margins during the same period last year. Analysts previously forecast the firm's profits would hit TWD37.2 billion in the third quarter.

Hon Hai's share price fell 0.9 percent at closing after the report's release, wiping out its gains this year.

In October, the company pulled in revenue of TWD485.5 billion (USD16.1 billion), up 7.63 percent on the month, the report shows. Revenue for the third quarter was TWD1.08 trillion, similar to the same period a year earlier.

However, the firm is optimistic about fourth quarter performance. If Apple solves its supply chain problems before the upcoming holiday season in the US, more iPhone X handsets will be sold, driving profits at Hon Hai. Fourth quarter profits could rise by as much as 35 percent from the third quarter, with revenue reaching as much as TWD1.45 trillion.