Hon Hai Precision Industry maintained a tight grip on costs amid the release of Apple's latest iPhones. Apple’s main gadgets assembler reported an 8.7 percent fall in net income to NT$34.6 billion ($1.1 billion) in the three months ended September, Taipei-based Hon Hai said Friday.

The world’s biggest contract manufacturer of electronics has been deploying robots and boosting production efficiency to drive down costs as the smartphone market endures its worst year on record. Apple, its largest customer, shipped 45.5 million iPhones last quarter and has unveiled a new line of Mac computers. The U.S. company is expected to move toward using more organic light-emitting-diode screens.

Hon Hai reported results for the first time since acquiring control of struggling Sharp in the quarter.

Sharp anticipates its first annual operating profit in three years after a series of cost-cutting measures. The Japanese electronics giant is investing heavily in next-generation display technology and streamlining its operations.