Foxconn, the world’s largest contract electronics maker, announced on Sunday that its revenue in February declined by 11.65% year-on-year, citing a weak consumer electronics market. Despite this decline, Foxconn has stuck to its previously-stated first-quarter outlook.
One of Apple’s major suppliers, Foxconn assembles the company’s iPhones. Despite the sales decline, the company’s revenue spiked to T$402.0 billion ($13.18 billion); a record for February. This rebound is largely due to the resumption of regular operations at the company’s Zhengzhou campus in China, a center for iPhone production, following the repealing of the country’s Zero Covid policy. Compared to January, revenue declined by 39.12%.
“Based on the revenue performance in the first two months, the outlook for first quarter 2023 is roughly in line with market expectation,” Foxconn stated following the release of its earnings. The company simply stated that its decline in sales was “due to conservative customers’ pull-in” without elaborating further.
So far this year, Foxconn shares have underperformed, rising 2.6% compared with the broader Taiwan market’s rise of 10.4%.
