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Foxconn expects first-quarter revenue decline after fourth-quarter demand slows

Written by The Anand Market

Updated on:

By Ben Blanchard and Sarah Wu

TAIPEI (Reuters) – Foxconn, the world’s largest contract electronics maker and biggest assembler of Apple’s iPhone, said on Friday it expects first-quarter revenue to fall year-on-year , after a slowdown in market demand in the previous quarter.

The first quarter is traditionally quieter than the last, the season when Taiwanese technology companies rush to supply smartphones, tablets and other electronic devices to major suppliers such as Apple for the markets’ holiday season. Westerners.

Foxconn said in a statement that the first quarter of this year is expected to be just as slow as the same period in the previous three years, but that revenue is expected to decline year over year.

The company does not give figures.

In the first three months of last year, revenue reached a record high for this quarter, driven by the resumption of normal factory operations after the COVID pandemic.

The company, officially called Hon Hai Precision Industry Co Ltd, said last month’s revenue reached NT$460.1 billion ($14.84 billion), which it said was better than expected, even though it was down 26.9% year-on-year.

For the fourth quarter, revenue fell 5.4 percent year-on-year to NT$1.851 billion, beating the LSEG SmartEstimate of NT$1.827 billion, which places more weight on analysts’ forecasts that are more consistently accurate.

Fourth-quarter revenue in its smart consumer electronics products, including smartphones, remained “flat” year-on-year due to slowing market demand, Foxconn said.

Foxconn will report its fourth-quarter results on March 14, when it will also update its outlook.

Foxconn shares closed flat on Friday ahead of its December sales release, compared with a 0.2% decline for the broader market.

($1 = 30.9990 Taiwan dollars)

(Reporting by Ben Blanchard and Sarah Wu; editing by Christian Schmollinger and Barbara Lewis)

Copyright 2024 Thomson Reuters.