Foxconn, the Taiwanese firm famous for assembling many of the world’s most high-profile mobile gadgets, yesterday posted its worst-ever first-half net loss.

The firm reported a net loss of US$224 million for the January-June period, widening significantly from the US$17 million loss posted a year earlier. According to a Reuters report, it was Foxconn’s largest first-half loss since the firm was listed in 2005.

Sales in 1H 2012 fell to US$2.5 billion from US$3 billion a year ago.

Foxconn issued a warning in April that its first-half loss would widen because of rising costs and keen price competition in the smartphone sector.

"Looking forward, challenging economic conditions around the world may continue to cast uncertainties in our business environment. The management team remains cautious over the future handset market conditions in 2012," Foxconn said in a statement.

Although the firm is famous for assembling Apple products such as the iPhone and iPad, it is thought to be feeling the effects of weak demand from other vendors. 

"Tier-two [mobile phone] makers, such as HTC, LG Electronics or even Sony, are either struggling themselves or their ODM orders are too small for Foxconn International," said BNP Paribas analyst Laura Chen in a report.