Science & Technology

Foxconn Reports Rise in November Revenue

Foxconn, the main smartphone manufacturer of the iPhone line, which is part of the Apple product range, reported an improvement in dynamic sales in November.

Foxconn Reports Rise in November Revenue

The mentioned company also predicts that the sales figure for the fourth quarter of this year will exceed expectations. Foxconn, which is Apple’s main partner, said that according to the results of November, its revenue amounted to 650 billion New Zealand dollars ($20.6 billion). This indicator increased by 18% year-on-year. Experts note that in part the positive dynamic in this case is because revenue for November this year is compared with the period when supply processes were disrupted due to quarantine restrictions imposed by the Chinese authorities as part of the fight against the coronavirus pandemic. In the first eleven months of 2023, Foxconn’s revenue decreased by 4.9% year-on-year, amounting to 5.7 trillion New Zealand dollars.

The company also reported that the revenue figure recorded in the period from October to November of this year significantly exceeded expectations. Against this background, Foxconn has improved its forecast for financial results for the fourth quarter of 2023. The last three months of the year are traditionally the period of the greatest production load for the company due to the growth in iPhone shipments amid the holidays.

At the same time, Foxconn said in November that the revenue figure for the fourth quarter would deteriorate year-on-year and continue the negative dynamic that has lasted for three consecutive quarters. In October, Apple warned about the lack of prospects for improving the financial results at the end of the year. The tech giant predicts that the revenue figure for the fourth quarter of 2023 will remain at about the same level as last year. The company said it had to face an unexpected increase in the competitiveness of Huawei Technologies Co. and the tightening of the Chinese business environment concerning foreign firms.

Analysts predict that according to the fourth quarter of this year, Foxconn’s sales volumes will fall by about 7.6% compared to the same period in 2022. It should be noted that three weeks ago it was expected that the sales level would decrease by 4%. The deterioration of the forecast turned out to be rapid. Analysts also expect Foxconn’s sales volumes to decrease by 7.5% year-on-year according to the results of 2023. If this forecast is confirmed by reality, the company will record the first reduction in annual revenue since 2016.

The financial results of the Foxconn unit of cloud and network products deteriorated in November compared to the figures recorded a year earlier. The reason for the negative dynamic was the practice of conservatively gaining clients.

The company’s revenue in the segment of smart home appliances last month showed a decrease compared to the October indicator. In this case, the result deteriorated moderately. Revenue in this segment increased year-on-year.

Foxconn plans to publish a report on financial results for the fourth quarter of this year in early January 2024.

As we have reported earlier, Foxconn to Invest $1.6 Billion in India.

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.