Science & Technology

Foxconn Expects Decline in Sales

Foxconn warned of a fourth consecutive decline in quarterly sales.

Foxconn Expects Decline in Sales

In the last three months of 2023, sales of the mentioned manufacturer of electronics and computer components based in Taiwan, decreased by 5.4% year-on-year. This result is evidence that global demand for consumer electronics continues to be weak.

In December, the Taiwanese manufacturer’s sales in monetary terms amounted to NZ$460.1 billion (US$14.8 billion). This figure is 27% lower than the result for the same period in 2022. The company’s sales indicator in financial terms for the fourth quarter of 2023 was fixed at NZ$1.85 trillion.

Against the background of Foxconn’s negative results in the last months of last year, concerns about the market dynamic of the latest generation of iPhones in 2024 increased. The Taiwanese manufacturer is assembling smartphones of the mentioned model. The iPhone 15 debuted in September. In the Chinese market, sales of this device did not meet Apple’s expectations. In the Asian country, the tech giant has faced such a problem as restricting the use of its smartphones in government organizations and companies that receive support from the local government. Also, the Chinese manufacturer Huawei Technologies has released smartphones of the Mate 60 premium series, which significantly improved its market position and increased competition. For Apple, the market of this country is one of the main ones, so all the problems in this region are a sensitive factor for Tim Cook’s company.

Liz Lee, deputy director of Counterpoint Research, predicts that iPhone sales will increase by 2% this year. At the same time, the average growth rate in the smartphone market is 5%. She also expects Huawei smartphone sales to increase by 37% this year.

Foxconn receives the bulk of its revenue from Apple’s cooperation. The company’s total sales last year in monetary terms amounted to NZ$6.16 trillion. This figure is 7% lower than the result for 2022.

As we have reported earlier, Foxconn Adds $1 Billion to Investment in Apple India Plant.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.