Employees work at a mobile phone factory of Rising Stars Mobile India Pvt., a subsidiary of Foxconn in Tamil Nadu, India, July 12, 2019.
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main apple supplier Foxconn The company reported a 10% year-over-year decline in profit in 2022 and expects lower demand for consumer electronics for the full year ahead, the company said in its earnings report on Wednesday.
The negative sentiment reflected Apple’s lackluster expectations for consumer sales.when apple reports Q1 2023 As a result, Chief Financial Officer Luca Maestri said the company expects double-digit declines in Mac and iPad sales compared to the same period last year. iPhone sales declined less in the March quarter than in the December quarter, the company added.
Foxconn will continue to expand its operations outside mainland China, saying that exploring new markets is the company’s top priority in 2023. Earlier this year, Foxconn pledged to significantly expand its operations in India.
According to FactSet data, Foxconn’s annual revenue exceeded analysts’ expectations, recording 511.85 billion yuan, higher than the market’s consensus estimate of 493.95 billion yuan, but its net profit was 20.07 billion yuan, lower than expected.
Taiwan-based Foxconn is a major manufacturer of consumer technology companies, but is best known for its relationship with Apple Inc., which relies on Foxconn to make and assemble products such as the iPhone.
Foxconn’s iPhone manufacturing plant in Zhengzhou garnered attention in late 2022 after video of Foxconn employees fleeing the facility during the strict COVID-19 lockdown went viral around the world. The Chinese government has since rolled back its most aggressive Covid protocols, but Apple and other major tech companies have stressed to suppliers the need to diversify outside of China.
Demand for electronics has slowed sharply as consumers grapple with the realities of a post-pandemic world. Global macroeconomic uncertainty is also holding back disposable income, making it difficult for businesses to continue the rapid pace of growth that many will enjoy from 2020 to the end of 2021.
An Apple spokesman declined to comment.