Foxconn expects year-on-year revenue fall in 1Q
Apple's biggest iPhone assembler, Foxconn, says slow market demand for smartphones will result in weak financial numbers this quarter.
The Taiwanese company, formally called Hon Hai Precision Industry Co, did not disclose an exact forecast, but said 1Q 2024 would compare unfavourably to 1Q 2023. The year-ago quarter was a strong one as it was the first to follow the end of pandemic controls.
All in all, 2023 was a bumpy year for Foxconn. Revenue for the company's December quarter fell 5.4% year on year to US 60 billion, but this total was was up by 20% from the previous quarter. Total 2023 revenue was US$198.9 billion, down 7% from 2022.
Aside from the uncertain iPhone market, Foxconn also has to deal with supply chain instability and geopolitical tension. For these reasons, it has has stepped up efforts to diversify its manufacturing supply chain for Apple, largely by investing heavily in Indian facilities. In December it announced a $1 billion new plant in Karnataka state.
Foxconn will report fourth quarter earnings on March 14, when it will also update its outlook.