Foxconn, Apple supplier, predicts improvement in Q2 following decrease in Q1 sales

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Foxconn, Apple supplier, predicts improvement in Q2 following decrease in Q1 sales
Foxconn, Apple supplier, predicts improvement in Q2 following decrease in Q1 sales

Foxconn, the world’s largest contract electronics manufacturer and Apple’s main iPhone assembler, said on Friday that second-quarter sales would rise after the previous quarter fell short of market expectations.

Foxconn (2317.TW), the world’s largest contract electronics manufacturer and the largest assembler of Apple’s iPhone, indicated on Friday that second-quarter sales would increase after the previous quarter fell short of market forecasts.

The first quarter is generally quieter than the previous one, as Taiwan’s tech companies compete to deliver smartphones, tablets, and other devices to key vendors such as Apple (AAPL.O), which opens a new tab for Western markets’ year-end holiday period.

Foxconn stated in a statement that this year’s second quarter “remains a traditional off-peak season, and major products are entering a period of transition between old and new products.”.

However, it stated that the second quarter would see both a quarterly and annual increase. It didn’t elaborate, and the corporation doesn’t provide numerical instructions.

The company, formally known as Hon Hai Precision Industry Co. Ltd., reported T$447.54 billion ($13.96 billion) in sales last month, the second highest total on record for the same time and an 11.8% year-on-year increase.

For the first quarter, revenue fell 9.6% year on year to T$1.322 trillion, falling short of the T$1.401 trillion LSEG SmartEstimate, which gives more weight to projections from analysts who are more consistently correct.

Last month, the company stated that it expected first-quarter revenue to fall marginally and that first-quarter revenue was in line with its expectations.

Revenue in its smart consumer electronics goods, including smartphones, fell year on year in the first quarter, owing to a high base from last year when it was hurrying to fulfill orders after a key factory in Zhengzhou, China, reopened following COVID pandemic-related difficulties.

However, for cloud and networking products, the company reported considerable year-on-year growth in the first three months of the year, “with strong customer pull-in for the cloud segment.”

Last month, Foxconn adopted a significantly more optimistic forecast for this year, stating on its fourth-quarter earnings call that it projected a big increase in revenue due to growing demand for artificial intelligence servers.

Foxconn shares have risen 52% this year, compared to a 13% increase in the overall market (TWII).

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