Foxconn, which is Apple’s largest supplier, has reported an 11.65% decline in revenue in February 2023 compared to the same month in the previous year, due to weaker demand for electronics. However, the company’s revenue for February was still more than $13 billion, making it the second-highest figure for the month on record. Foxconn has also stated that operations at its major iPhone factory in Zhengzhou, China, are recovering from Covid-19-related disruptions.
The company said that revenue from computing, smart consumer electronics, and cloud and networking products declined in February from the previous year, primarily due to conservative customers’ pull-in. Despite the dip in revenue, Foxconn expects its first-quarter 2023 outlook to be in line with market expectations based on its revenue performance in the first two months of the year.
Last November, Apple warned of delays in shipments of the iPhone 14 after Chinese officials locked down a district in Zhengzhou, where Foxconn’s mega-factory is located. Two weeks later, protests at the plant disrupted manufacturing as thousands of workers left production lines. However, last month, Foxconn reported a 48.2% year-on-year revenue increase in January, hitting a record high as manufacturing in Zhengzhou returned to pre-pandemic levels.
Over the weekend, Foxconn also responded to reports that it was planning to expand its operations in India, including investing up to $1 billion in a significant iPhone plant in Bengaluru and creating around 100,000 jobs. However, the company did not enter into any binding new agreements during the trip, according to reports. Foxconn has been assembling iPhones in India at a site in Tamil Nadu and is known formally as Hon Hai Precision Industry. The firm’s chairman and CEO, Young Liu, said that Foxconn would continue to communicate with local governments to seek the most beneficial development opportunities for the company and all stakeholders.
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