Foxconn expects Q1 revenue drop as iPhone demand falls

Apple's largest manufacturer says that Q4 2023 revenues for all of its business, including the iPhone, declined 5.4% year on year, and that it believes a slowing demand will also impact Q1 2024.

Back in August 2023, Foxconn reported that its profits continued to be down year over year — following a calamitous 56% drop in Q1 2023 — but that it expected to get a boost from the launch of the iPhone 15. However, it's latest overall figures covering Q4 2023 saw a fourth consecutive decline in sales.

According to Reuters, Foxconn's latest earnings report says that Q4 2023 proved to be what the firm generously called "flatish." Overall revenues, including smartphones, was down 5.4% year over year to $59.54 billion, though this was described as better than expected.

Most significantly, revenue for the peak month of December 2023 was down 26.9% year over year, to $14.84 billion.

Representatives for the firm also say that they now expect demand for its business, including the iPhone, to also fall in Q1 2024, though it has given no guidance on figures. First quarter sales are always traditionally lower than fourth quarter ones, though, as Apple launches new iPhones in September ahead of the holiday buying season.

Separately, market analysts have been downgrading Apple because of falling demand for the iPhone. The most recent downgrading came from Piper Sandler, whose analyst Harsh Kumar believes that economic concerns plus rising prices of RAM and Flash chips mean Apple will have a difficult first half of 2024.

Barclays investment bank is also pessimistic about the second half of 2024, stating without clear evidence that it believes the iPhone 16 range will fail to offer any compelling new features.