What is the world’s largest electronics manufacturer has alerted the technology sector in recent hours. The company Foxconn has announced that the demand for electrical products is experiencing a drop and this is expected to be the tonic for this year. Thus, the Taiwanese multinational based in the Tucheng District in New Taipei, has released the economic figures for the last quarter.
which is the Apple’s top supplierhas made public its decline in earnings, which they have fallen 10% in the corresponding months from October to December of last year 2022, in the same way that the new year does not seem to end up assuming its comeback.
Foxconn numbers speak
When we talk about Foxconn we do it the largest manufacturer of electronic components worldwide and the largest exporter in China. Among its clients are the main companies in the technology sector in the United States, Europe and Japan, however it is responsible for the assembly of a large part of the iPhones that are sold throughout the world.
As reported, Foxconn’s profit for the period between October and December of last 2022, it fell to 1,310 million dollarsa reduced figure if we value the period of the previous year.
Regarding this year, Foxconn has reported that it has reached a turnover in the past month of February of 402,035 million Taiwanese dollars, or what is the same, 12,382 million euros. In this sense, these numbers represent for the company the second best figure in the month in the entire history of the company, although they fell by 39.12% if we look at the figures invoiced in January.
The numbers decreased by 11.65% compared to the month of February last year, where 455,000 million Taiwan dollars (14,013 million euros) were billed. In this sense, the technology company has clarified that “revenues in February were the second highest for the same period.”
The forecast for 2023
Foxconn if you have forecast a growth important during 2023 in other areas such as computing, cloud and networking, and component products. In this line, from the manufacturer of iPhone, iPad, Kindle, PlayStation, Xbox360 and GoPro cameras, it is maintained that revenues for the first quarter and for the full year should be stable.
Analyzing the income of the first two months corresponding to 2023, Foxconn does expect the first quarter of the year to be in line with the expectations offered by the market. Foxconn Chairman Liu Young-way stated that “we maintain a relatively conservative view towards smart consumer electronics and we believe they could decrease slightly”, assessing data such as inflation and the slowdown in the world economy.
Already in the 2022 the Taiwanese company faced a major pothole when its largest factory in the world located in the Chinese town of Zhengzhou, was blocked due to the restrictions derived from the Covid-19. Consequently, the workers of said factory left the production lines as a sign of protest to the closures. Now, in January this year, Zhengzhou has resumed production and has seen its revenue increase by a 48.2% compared to January 2022.
In late February, Young Liu, the company’s Chairman and CEO, visited India to expand his operations, investing $700 million in a new factory located in Bengaluru. Facts that suggest that Foxconn expects a great recovery in the second quarter of 2023, as the production of new products increases and the market expands.
