Foxconn's Revenue Drops Due to iPhone Sales Decline

Foxconn Revenue Drops Amid Weak iPhone Demand

Apple’s biggest supplier, Foxconn, said that its sales for the last month were down 11.65% compared to the same time in 2022. This was because fewer people wanted to buy electronic goods.

Despite this, revenue for the month of February was over $13 billion (£10.8 billion), which is the second highest number ever recorded for the month.

iPhone Maker Foxconn Sees Slump in Sales
Foxconn Revenue Hit by Decreased iPhone Sales

Foxconn further stated that operations at the world’s largest iPhone manufacturing, which is located in the city of Zhengzhou in China, are in the process of recovering from disruptions caused by Covid.

Also, over the weekend, the company announced that it was looking into potential business possibilities in India.

According to a statement released by Foxconn on Sunday, the company’s revenue from computing, smart consumer electronics, as well as cloud and networking products, fell in February when compared to the same month one year prior “due to conservative consumers’ pull-in.”

According to the performance of the company’s revenue in the first two months, the forecast for the first quarter of 2023 is approximately in line with market expectations, the company stated.

After Chinese authorities locked down a district in Zhengzhou where Foxconn’s mega-factory is situated, Apple issued a warning in November that shipments of its new iPhone 14 would be delayed as a result of the incident.

Two weeks later, demonstrations broke out at the factory, which caused thousands of workers to abandon their production lines and caused a disruption in the manufacturing process.

The previous month, Foxconn announced that its revenue for the month of January had increased by 48.2% from the same month a year earlier to reach a record high. This came as manufacturing in Zhengzhou returned to the levels it had before the pandemic.

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Foxconn, meanwhile, responded over the weekend to rumours that the company would greatly extend its operations in India after its chairman and CEO, Young Liu, spent the previous week in the country. At the moment, young Liu was in India.

It was reported by various sources in the media that the company intended to invest up to one billion dollars in a major iPhone plant in Bengaluru. There were also rumours that the investment made by Foxconn in India would result in the creation of approximately 100,000 employment.

According to what the BBC understands, the business did not sign any legally binding new arrangements while it was away.

The numbers that were reportedly achieved by Foxconn were not mentioned in the company’s statement that was released on Saturday.

Foxconn, according to Mr Liu, will keep talking to local governments to find the best possible growth prospects for the business and its constituents.

Several Apple suppliers, including Foxconn, are presently assembling iPhones in India. One of these suppliers is Apple.

The products are put together at a location in Tamil Nadu by the Hon Hai Precision Industry company, which has its headquarters in Taiwan and is officially known by that name.

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