Apple supplier Foxconn expects decline in consumer electronics demand, prioritizes global growth

Major Apple supplier Foxconn reported a 10% year-over-year diminution successful nett for 2022 and anticipated a diminution successful user electronics request for the afloat twelvemonth ahead, the institution said successful its net study Wednesday.

The antagonistic sentiment reflected Apple's muted expectations for user sales. When Apple reported first-quarter 2023 results, Chief Financial Officer Luca Maestri said the institution anticipated double-digit declines for Mac and iPad income for the coming March 4th compared to the anterior year. The institution added iPhone income volition diminution little successful the March 4th compared to the Dcember quarter.

Foxconn volition proceed to grow its beingness beyond mainland China, and said that the exploration of caller markets was a cardinal precedence for the institution successful 2023. Earlier this year, Foxconn committed to a large enlargement of its beingness successful India.

Foxconn bushed analysts' top-line estimates, signaling 511.85 cardinal Chinese yuan for the afloat year, versus a statement estimation of CNY493.95 billion, according to FactSet, but missed connected the bottommost enactment with a nett income of CNY20.07 billion.

Taiwan-based Foxconn is simply a large shaper for user exertion firms, but is champion known for its narration with Apple, which relies connected Foxconn to nutrient and assemble its iPhone, among different products.

Foxconn's iPhone manufacturing installation successful Zhengzhou garnered attraction successful precocious 2022 aft videos of Foxconn employees fleeing the installation successful the midst of stringent covid lockdowns dispersed worldwide. The Chinese authorities has since pulled backmost connected the astir assertive of its Covid protocols, but Apple and different large exertion companies person emphasized to suppliers a request to diversify beyond China.

Demand for physics goods has slowed dramatically arsenic consumers grapple with the realities of a mostly post-pandemic world. Global macroeconomic uncertainty has besides dampened discretionary income, making it hard for companies to proceed the gait of accelerated maturation galore enjoyed from 2020 to precocious 2021.

An Apple spokesperson declined to comment.