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iPhone maker Foxconn sees sales decline in 2023 as electronics demand weakens
- The Taiwanese firm, also known as Hon Hai Precision Industry, reported on Monday a drop in net profit to US$1 billion after posting a revenue decline
- It now expects sales to full in the current quarter and the year overall, underscoring a worsening global market for electronics
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Hon Hai Precision Industry now expects 2023 sales to fall after previously forecasting flat revenue, sounding a warning about demand for the devices it makes for Apple and other global firms.
The Taiwanese company, also known as Foxconn Technology Group, said it now sees its sales falling in the current quarter as well as for the year overall, with most of its main business segments in contraction.
Hon Hai on Monday reported net income of NT$33 billion (US$1 billion) versus the NT$25.93 billion average of analyst estimates. Its operating profit missed estimates. It earlier posted a 14 per cent decline in revenue for the period, its first drop since the final three months of 2021.
Hon Hai’s results underscore expectations of a worsening market for global electronics, as consumers and corporations hold off on spending during an economic downturn. From Apple to Qualcomm and Taiwan Semiconductor Manufacturing Co, the tech industry’s bellwethers have warned that a downturn that set in after the pandemic may last longer than initially anticipated.
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The story of Terry Gou and Foxconn
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Apple, Hon Hai’s top customer, in August telegraphed its longest sales slump in decades, the result of crumbling demand for smartphones, tablets and computers worldwide. China, the world’s biggest market for those devices, is mired in an economic funk that some economists say may worsen over time.
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