iPhone Assembler Foxconn Reveals 13.8% Revenue Drop in Q2

Apple’s leading iPhone assembler and supply chain partner Foxconn has reported a 13.8% year-on-year decline in revenue for the second quarter, Reuters is reporting.

However, the Taiwanese company, formally known as Hon Hai Precision, anticipates a more positive outlook for the third quarter as it approaches the year-end peak shopping season.

In the statement, Foxconn noted a drop in revenue for smart consumer electronics products, including smartphones, which constitute its primary business driver. This decline can be attributed to a higher base of comparison from the same period last year, it said.

The world’s largest contract electronics manufacturer revealed that its revenue from April to June stood at T$1.3 trillion ($41.76 billion), aligning with its expectations.

Despite a 19.7% year-on-year decrease in sales for June, which amounted to T$422.8 billion, Foxconn marked the second-highest figure recorded for the same month.

(Image: Wikipedia)

“The operations will gradually ramp up with the ongoing peak season in the second half of the year,” the company stated. It further expressed optimism for the third quarter, expecting growth to surpass that of the second quarter.

Taiwan’s tech manufacturers typically experience a slower first half of the year, with major electronics vendors like Apple launching new products closer to the year-end holiday season.

Foxconn encountered a significant setback in the first quarter, as its net profit plummeted by 56%, falling short of forecasts and marking the largest quarterly decline in three years.

While Foxconn shares have risen by 8.6% this year, they have lagged behind the broader Taiwan market, which has witnessed a 20.1% increase.

The company is scheduled to release its second-quarter earnings report on August 14.