FIH Mobile, the handset arm of the Foxconn Group, has reported net profits of US$136 million for 2016, declining 40.4% from a year earlier.

Revenues for 2016 totaled US$6.23 billion, decreasing 16.3% from the previous year.

The company cited decreased demand from clients, losses resulting from liquidation of corporate property and facilities, and increased tax expenditure and operating costs as factors that brought down earnings.

Looking forward, replacement demand for smartphones in India, Asia Pacific and other emerging markets will contribute to revenue growth in the coming years, said the company.