Foxconn revenue plunges due to low electronics demand globally

Foxconn, Apple's biggest supplier and contract manufacturer, has seen a slump in revenue due to weaker demand for electronics in February 2023. The revenue last month fell by 11.65% compared to the same period in 2022. Despite this decrease, the company's February revenue was still over $13 billion, making it the second-highest on record for that month.

The company also reported an unaudited consolidated revenue of NT$ 1.01 trillion for February 2023, a decrease of 8.9% from January 2023 and an increase of 12.6% from February 2022.

Based on the revenue performance in the first two months of 2023, Foxconn said that it expects Q1 2023 to be in line with market expectations. Foxconn faced a manufacturing slump in the fourth quarter of 2022 when the company's largest factory in the world located in China's Zhengzhou was locked down due to COVID-related curbs. Factory workers also protested the lockdowns that disrupted the manufacturing process as thousands of workers left the production lines of the factory. In January 2023, however, as Zhengzhou resumed its production, the revenue jumped by 48.2% when compared to January 2022.

Last week, Foxconn chairman and chief executive Young Liu visited India to significantly expand its operations in the country, by investing $700 million for a brand new factory in Bengaluru.

Foxconn says that it expects a strong recovery in the second quarter of 2023 as it ramps up production of new products and expands its market share in various segments.

Foxconn revenue plunges due to low electronics demand globally