Foxconn’s July sales drop 1.23% on-year, Q3 outlook better

Taiwan’s Foxconn, the world’s largest contract electronics maker and a serious provider for Apple, mentioned on Saturday income in July fell 1.23% year-on-year however forecast a business rebound for the third quarter.

Foxconn, formally known as Hon Hai Precision Industry Co Ltd, mentioned income final month reached T$469.23 billion ($14.82 billion), up practically 11% from June.

The firm mentioned income was the second-highest for the month of July, because of “customers’ increasing pull-in” for its sensible shopper electronics merchandise, together with smartphones. That phase recorded double-digit progress from a 12 months in the past, it mentioned, as main distributors equivalent to Apple gear up for brand spanking new product launches later this 12 months.

Other companies, together with computing merchandise equivalent to PCs and cloud and networking merchandise, declined from a 12 months in the past, the corporate mentioned, with out elaborating.

“With the second half of the year peak season currently underway, operations will gradually ramp up,” the corporate mentioned in a press release.

“The outlook for the third quarter, which will be better than the second quarter, is expected to increase at an on-quarter pace higher than seen in the previous two years,” it mentioned.

The first half of the 12 months is historically slower for Taiwan tech producers as main electronics distributors together with Apple launch new merchandise close to the year-end vacation season. Second-quarter income dropped 13.8% year-on-year, consistent with the corporate’s expectations, Foxconn mentioned in July. It stories third-quarter earnings on Aug. 14.

($1 = 31.6520 Taiwan {dollars})

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