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Apple supplier Foxconn sees revenue decline in first quarter of 2024 amid weak global consumer electronics demand, sluggish iPhone sales
- Foxconn did not provide an estimate of the quarterly drop, but said the year’s first three months represent an off-peak season for the industry
- The world’s largest electronics contract manufacturer reported total 2023 revenue was down 7 per cent year on year to US$198.9 billion
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Iris Dengin Shenzhen
Foxconn Technology Group, the world’s biggest iPhone assembler, expects revenue to decline in the first quarter of 2024 amid weak global consumer electronics demand, extending a decrease in sales in the past three months.
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Taiwan-based Foxconn, formally known as Hon Hai Precision Industry, did not provide an estimate on the quarterly revenue drop, but said the first three months will be compared to a high base in the same period last year, when its factories in mainland China resumed normal operations after disruptive pandemic controls were relaxed by the government, according to the company’s statement on Friday.
The world’s largest electronics contract manufacturer also indicated that the year’s first quarter is typically an off-peak season for the industry.
Revenue for the company’s December quarter fell 5.4 per cent year on year to NT$1.85 trillion (US$60 billion), but was up by 20 per cent from the previous quarter. Total 2023 revenue was US$198.9 billion, down 7 per cent from 2022.
Foxconn on Friday blamed slow market demand for its static consumer electronics product business in the fourth quarter, even though the company went through a bumpy period a year ago when its biggest iPhone plant in Zhengzhou, capital of central Henan province, was rocked by an exodus of tens of thousands of employees and violent workers’ protests amid a Covid-19 outbreak that began in late October.
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The company’s dim first-quarter outlook reflects concerns raised by investors of major client Apple about sluggish iPhone sales, which prompted the US tech giant to be hit by two ratings downgrades this week.
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