Foxconn reports fall in Feb sales, sticks to Q1 outlook

Taiwan’s Foxconn, the world’s largest contract electronics maker and main iPhone assembler for Apple, stated on Sunday income in February fell 11.65% year-on-year resulting from weak point in good shopper electronics, however caught to its first quarter outlook.

Revenue final month nonetheless managed to succeed in the second highest on document for February at T$402.0 billion ($13.18 billion), with operations returning to regular on the COVID-disrupted Zhengzhou campus in China, a centre for iPhone manufacturing, the corporate stated in an announcement.

Production of iPhones confronted disruption forward of Christmas and January’s Lunar New Year holidays, after curbs to regulate COVID-19 prompted hundreds of staff to depart Foxconn’s manufacturing facility traces in Zhengzhou.

Compared to the earlier month, income dropped 39.12%, though cumulative gross sales for the primary two months of the 12 months jumped on-year 17.94% due to January’s notably robust efficiency when Zhengzhou operations started getting again on observe.

For good shopper electronics merchandise, which incorporates smartphones, income in February fell year-on-year “due to conservative customers’ pull-in”, it stated, with out giving particulars.

Analysts say Foxconn assembles round 70% of iPhones. The Zhengzhou plant produces nearly all of Apple’s premium fashions, together with the iPhone 14 Pro.

“Based on the revenue performance in the first two months, the outlook for first quarter 2023 is roughly in line with market expectation,” Foxconn stated with out elaborating. Analysts count on first-quarter income to develop by round 4% year-on-year, in line with Refinitiv. The first quarter is historically a quieter interval for Taiwan’s tech producers.

Apple Inc final month forecast its income would fall for a second quarter in a row however that iPhone gross sales had been possible to enhance as manufacturing had returned to regular in China after the COVID-related shutdowns.

Foxconn shares have risen 2.6% up to now this 12 months, underperforming the broader Taiwan market which is up 10.4%.

The firm experiences fourth-quarter earnings on March 15, when it should additionally elaborate on its outlook.

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