The Taiwanese company warned of a fourth straight quarterly sales decline amid weak demand for consumer electronics.
In December, Foxconn reported a 27% drop in sales to $14.8 billion, and is now forecasting a decline in the new period amid concerns over the latest generation of iPhones (Foxconn is Apple’s leading iPhone assembly partner).
The iPhone 15 went on sale in September to a mixed early response in key markets: in the US it started a refresh cycle of previous iterations, while sales fell in China. Previously, the ban on the use of Apple equipment in local self-government bodies and state organizations was extended in the country. Also, the local technology giant Huawei released its new Mate 60 smartphone.
Foxconn itself has often come under investigation by regulators in China, which has scared away investors and the confidence of foreign companies operating in the country. The company is also facing pressure from local rival Luxshare Precision Industry, which is looking to expand its iPhone production capacity.
According to Counterpoint Research, cited by Bloomberg, iPhone sales are likely to grow 2% this year, less than the overall mobile market growth of 5%. In addition, Huawei smartphone sales are expected to increase by 37%. Barclays and Piper Sandler cut their ratings on Apple this week due to weak demand for the latest iPhone.
The bulk of Foxconn’s revenue depends on Apple, and total sales in 2023 were $198 billion, down 7% from last year.
