Foxconn, the world’s largest contract electronics maker and Apple’s biggest iPhone assembler, has revealed its first quarter revenue fell 9.6 percent to NT$1322.163 billion.
Taiwan’s Foxconn predicted second quarter revenue would rise year-on-year.
Foxconn said components and other products as well as Cloud and networking products achieved significant growth in the first quarter of 2024. Computing products was flat due to poor demand in PC market. Smart consumer electronics products declined.
Typically, the first quarter experiences lower activity compared to the preceding quarter, as Taiwanese tech firms gear up to supply smartphones, tablets, and other electronics for major vendors like Apple ahead of the year-end holiday season in Western markets.
In a statement released on Friday, Foxconn acknowledged that the second quarter of the year typically represents an off-peak season, characterized by the transition between old and new product lines. Despite this, the company expressed optimism for growth both quarter-on-quarter and year-on-year. However, specific numerical guidance was not provided, consistent with the company’s standard practice.
Foxconn reported revenue of T$447.54 billion ($13.96 billion) for last month, marking the second-highest figure recorded for the same period and reflecting an 11.8 percent year-on-year increase. This positive performance follows a first quarter where revenue declined by 9.6 percent year-on-year to T$1.322 trillion.
The decline in revenue for smart consumer electronics products, including smartphones, was attributed to a high base from the previous year, when Foxconn rushed to fulfill orders after reopening a key factory in China’s Zhengzhou following disruptions caused by the COVID-19 pandemic.
Conversely, the company reported significant year-on-year growth in cloud and networking products during the first quarter, driven by strong demand in the cloud segment.
Last month, Foxconn presented a more optimistic outlook for the year, foreseeing substantial revenue growth fueled by increasing demand for artificial intelligence servers, as indicated during its fourth-quarter earnings call.
