Foxconn, the world’s largest contract electronics manufacturer and main assembler for Apple’s iPhones, projected a year-on-year decrease in first-quarter revenue. This projection follows a period of subdued market demand that impacted the previous quarter’s performance.
The first quarter typically witnesses a lull compared to the preceding one, known for Taiwan’s tech firms scrambling to fulfill orders for smartphones, tablets, and various electronics for major vendors, especially Apple, in preparation for the year-end holiday season in Western markets.
Foxconn disclosed in a news statement that the initial quarter of this year is expected to mirror the slower pace observed in the same period over the past three years, resulting in a year-on-year revenue decline. However, the company refrained from providing specific numerical guidance.
Last year’s first quarter saw a record revenue surge due to the resumption of normal operations in factories post the COVID-19 pandemic.
Foxconn, officially known as Hon Hai Precision Industry, reported a revenue of T$460.1 billion ($14.84 billion) for last month, surpassing expectations despite a 26.9 percent decrease year-on-year.
In the fourth quarter, revenue of Foxconn experienced a 5.4 percent decline year-on-year, totaling T$1.851 trillion. Foxconn’s overall revenue witnessed a 7 percent dip in 2023, attributed to lackluster demand across segments like consumer electronics, Cloud and networking products, and Computing products.
The smart consumer electronics division, encompassing smartphones, reported a flattish performance in fourth-quarter revenue compared to the previous year, primarily due to sluggish market demand, according to Foxconn.
Apple’s stock encountered a downturn this week following two analyst downgrades concerned about iPhone demand. Nonetheless, Apple remains the most valuable company worldwide in terms of market value, Reuters news report said.
Foxconn is slated to unveil its fourth-quarter earnings on March 14, simultaneously providing an updated outlook for the company.