Foxconn predicts decline in iPhone demand
Foxconn's parent company Hon Hai says it expects iPhone and other smartphone sales to contract overall in 2023, following its latest earnings report.
Foxconn's parent company Hon Hai says it expects iPhone and other smartphone sales to contract overall in 2023, following its latest earnings report.
Following a calamitous decline in profits for its first 2023 quarter, iPhone manufacturer Foxconn's recovery measures plus increasing demand have greatly helped the latest figures.
The largest iPhone manufacturer, Foxconn, has revealed that China's coronavirus lockdown measures have severely hit its earnings estimates and expected revenue growth.
Apple assembly partner Foxconn is having to deal with competition for its employees in Vietnam, with Hon Hai chairman Young Liu accusing rivals of poaching its workers.
The parent company of iPhone assembler Foxconn says that shortages of certain components are reducing, and "overall supply constraints" will ease by Q3 2022.
Foxconn's revenues in the second quarter of 2021 were up 20% year-over-year because of continued elevated demand of the iPhone and other consumer devices.
A pair of facilities in India operated by Apple supply chain partners Wistron and Foxconn were affected by COVID-19 in May, reports state, with a total of 13 employees confirmed to be infected.
Foxconn parent company Hon Hai earned $47 billion in the first quarter of 2021, up 44% from last year, reportedly on demand from home workers buying iPhone 12 models.
Foxconn's parent company Hon Hai has beaten expectations with record increased earnings due to demand for Apple's 5G iPhone 12 range.
As it announces better than expected financial results, Apple supplier Foxconn is also reportedly planning to increase moving production away from China.
The sale of an iPhone factory owned by Wistron to Luxshare may be a long-term problem for rival Apple supply chain partners Hon Hai and Pegatron, JP Morgan reckons, with the purchase likely to help Wistron increase its involvement in iPhone production further.
Despite its second quarter revenues still being lower than last year, Foxconn's finances appear to be recovering broadly in line with the company's forecast.
Apple's major iPhone manufacturer Foxconn has reported that the coronavirus has vastly reduced its lower profits, even more than analysts expected, but says that sales are now stabilizing.
Foxconn has denied a Tuesday report claiming it was canceling investment in India valued at $5 billion, one that alleged there was an internal dispute between the iPhone assembly partner and Apple itself.
Foxconn has told investors that it has the capacity to produce iPhones for the American market without using its Chinese facilities, potentially skirting possible US/China trade tariffs.
Apple assembly partner Hon Hai — better known as Foxconn — has posted net income of $2.5 billion for the December quarter, reportedly linked to strong orders and consequent sales of the iPhone X.
Hon Hai — better known as Foxconn — reported net income of just $589 million in the June quarter, missing analyst forecasts ahead of Apple's launch of the "iPhone 8" and "iPhone 7s" this fall.
Four of Apple's manufacturing partners — Hon Hai/Foxconn, Compal, Wistron, and Pegatron — have filed counterclaims against Qualcomm, accusing the chipmaker of violating two sections of the Sherman Antitrust Act.
The two entities bidding for control of Sharp — Hon Hai and Innovation Network Corp. — are both ultimately doing so with Apple as a major factor, a report said on Friday.
Apple's primary assembly partner, Hon Hai — better known as Foxconn — saw its revenues drop approximately 20 percent in December, on top of missing full-year sales predictions from analysts.
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