Foxconn, a supplier to Apple Inc (AAPL.O), reported a 10% decline in fourth-quarter net profit from a year earlier on Wednesday as output at its largest iPhone facility was hampered by China’s stringent COVID-19 regulations.
The largest manufacturer of contract electronics in the world predicted flat sales for the first quarter of 2023, but a strong rise in sales of smart consumer devices during the first three months.
Apple Supplier Foxconn
The Taiwanese corporation said that its net profit for the October to December quarter dropped from T$44.4 billion during the same time the year before T$40 billion ($1.31 billion).
According to Refinitiv, it was in line with the T$39.98 billion profit prediction made by 13 experts on average.
- Foxconn, Apple Inc (AAPL.O) supplier, reported a 10% decline in the fourth quarter.
- The Taiwanese corporation’s net profit dropped from T$44.4 billion to T$40 billion.
- The majority of Apple’s premium models are made in Zhengzhou.
Without going into further detail, the company stated in a statement that the revenue for its main consumer electronics items was flat in the fourth quarter compared to a year earlier. The category includes smartphones and makes about more than half of its entire income.
Foxconn’s huge Zhengzhou campus was disrupted by COVID-19-related restrictions in January, forcing hundreds of employees to leave production lines, and disrupting the production of iPhones over the holidays.
The majority of Apple’s premium models, including the iPhone 14 Pro, are made in Zhengzhou, where the company previously claimed production had returned to normal.