March 16, 2023: On Wednesday, Major Apple supplier Foxconn stated that a 10% every year refused in profit for 2022 and anticipated a decrease in consumer electronics demand for the entire year ahead the company said in its earnings report.
The negative sentiment stated Apple’s muted expectations for consumer sales. When Apple stated first-quarter 2023 results, Chief Financial Officer Luca Maestri stated that the firm anticipated double-digit rejection for Mac and iPad sales for the month of March quarter compared to the prior year. The firm added iPhone sales would decline less in the March quarter compared to the December quarter.
Foxconn will continue expanding its presence beyond mainland China and said that the company’s exploration of new markets was a key priority in 2023. Earlier this year, Foxconn committed to significantly expanding its presence in India.
According to FactSet, Foxconn beat analysts’ top-line estimates, recording 511.85 billion Chinese yuan for the entire year, versus a consensus idea of CNY493.95 billion, but has missed on the bottom line with a net income of CNY20.07 billion.
Taiwan’s Foxconn is a major manufacturer for a consumer technology company but is best known for its connection with Apple, which relies on Foxconn to give and assemble its iPhone, among other products.
Foxconn’s iPhone facility in Zhengzhou garnered attention in 2022 ended after videos of Foxconn employees fleeing the facility amid stringent covid lockdowns spread all over the world. The Chinese administration has since pulled back on the most aggressive Covid protocols. Still, Apple and other major technology companies have focused on suppliers and a need to diversify beyond China.
Demand for electronic goods is slowing dramatically as consumers grapple with the realities of a significantly post-pandemic world. Global macroeconomic uncertainty has dampened discretionary income, making it difficult for firms to continue the speed of rapid growth many had fun from 2020 to the end of 2021.