Foxconn Revenue Projection and Market Dynamics
On the current Monday, Foxconn, renowned as the world’s largest contract electronics manufacturer and the principal assembler of iPhones for tech behemoth Apple, once again underlined its foresight of a year-on-year revenue dip in the first quarter. This outlook is rooted in the customary ebb in activity during the initial quarter compared to the antecedent one. During this phase, Taiwan’s tech firms, including Foxconn, traditionally engage in a fervent competition to meet the demand for smartphones, tablets, and assorted electronics, catering to the year-end holiday upswing in Western markets.
In an official communication, Foxconn accentuated that its overall operations in the ongoing first quarter are gradually shifting into the traditional off-peak season. The expected performance aligns with the patterns of the past three years. The company attributes the projected revenue decrease to the heightened comparison base in the first quarter of 2023, following the resumption of regular operations in the aftermath of disruptions caused by the COVID-19 pandemic.
Without delving into specific numerical predictions, Foxconn disclosed that its revenue for the preceding month totaled T$522.1 billion ($16.65 billion), marking the second-highest figure for the corresponding period. This signifies a 13.5% month-on-month increase but a 20.9% year-on-year downturn.
The breakdown of January’s revenue reveals a substantial uptick in cloud and networking products, fueled by the introduction of new offerings for clientele. In contrast, revenue for computing products experienced a marginal dip due to the slowdown in demand for personal computers.
Chairman Liu Young-way, in a statement on the preceding Sunday, conveyed his anticipation of Foxconn’s business performance for the current year being “slightly better” than the previous one. While acknowledging a challenge, he pointed to a chip shortage for AI servers amid a surge in demand.
Set for March 14, Foxconn is slated to unveil its fourth-quarter earnings, concurrently updating its outlook. Despite a 0.5% dip in closure on Monday, the company retains an optimistic outlook, surpassing the 0.2% gain observed in the broader market.
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