TAIPEI -- Hon Hai Precision Industry's (Foxconn) 2008 unconsolidated net profit fell 29% even as its unconsolidated revenue rose 19% to an all-time high of nearly NT$1.5 trillion.

For the year ended Dec. 31, the contract electronics assembler reported net profits of NT$55.13 billion ($1.59 billion) on sales of NT$1.47 trillion ($42.3 billion in today's dollars).

The fourth-quarter net profit was down 65% year-over-year to NT$9.3 billion, while revenue was up 3% to NT$426.4 billion ($12.24 billion).

Daiwa Institute of Research analyst Calvin Huang called the results "disappointing," adding, "It's certain 2009 net profit will be worse than 2008."

The world's largest contract electronics assembler, which makes everything from connectors to bare circuit boards to assemblies and enclosures, is coming under increasing scrutiny by analysts who think it needs to outsource some programs.

Huang told Dow Jones that Hon Hai's business model is too vertically integrated. "Its vertical integration model means it makes everything by itself. This is more expensive And that also means a fixed expenditure every month."