Foxconn, the largest contract electronics manufacturer in the world and a key iPhone manufacturer for Apple Inc., reported on Sunday that its revenue in January increased by 48.2% year over year as it overcame COVID difficulties in China.
Revenue increased by 4.93 percent from the previous month thanks in large part to robust double-digit growth in the market for computing and smart consumer gadgets, which includes smartphones.
With operations returning to average and shipping volumes rising at its Zhengzhou campus in China, a center for iPhone manufacture, revenue in January hit a new high of T$660.4 billion ($22 billion), according to a statement from the business.
As per analysts, Foxconn assembles about 70% of iPhones, with most of its premium models, like the iPhone 14 Pro, being made in the Zhengzhou facility. Following restrictions to regulate COVID-19, which caused hundreds of workers to leave Foxconn's assembly lines in Zhengzhou, production of iPhones was disrupted in advance of Christmas and the Lunar New Year holidays in January.
"Based on market consensus for the first quarter of 2023, January revenue came in slightly ahead. The outlook for the first quarter will likely reach market expectations," Foxconn said.
So according to Refinitiv, analysts anticipate that first-quarter revenue would increase by about 4% over the same period last year. Apple predicted on Thursday that its revenue would decline for the second consecutive quarter, but that iPhone sales were anticipated to increase as China's production had resumed after being slowed down due to COVID.
Shares of Foxconn have fallen 0.3% so far this year, underperforming the 10.4% increase in the larger Taiwan market. On March 15, the company releases its fourth-quarter financial results, along with a detailed outlook.
Foxconn is a multinational Taiwanese electronics contract manufacturer with headquarters in Tucheng, New Taipei City, Taiwan. It was founded in 1974. The company had yearly sales of 5.99 trillion New Taiwan dollars ($175 billion) in 2021, and it was included as the 20th largest company in the Fortune Global 500 for 2022.
It is the biggest manufacturer and service provider of technology in the world. Despite having its headquarters in Taiwan, the corporation is one of the biggest employers globally and the biggest private employer in the People's Republic of China. The company's founder and previous chairman is Terry Gou.
After founder Terry Gou retired, Foxconn designated Young Liu its new chairman, starting July 1, 2019. Young Liu was the head of business group S and the special assistant to the previous chairman Terry Gou.
