Apple supplier Foxconn sees 15 per cent dip in first quarter revenue amid coronavirus curbs
- Foxconn is among manufacturers worldwide grappling with virus-related curbs that have upended supply chains and hurt demand
Apple supplier Foxconn Technology Group warned revenue would drop 15 per cent in businesses including consumer electronics and enterprise products in the first quarter, but that it would recover thereafter as production returns to normal in virus-hit China.
Foxconn is among manufacturers worldwide who are grappling with virus-related curbs that have upended supply chains and hurt demand. Apple, its top client, rescinded its March quarter sales guidance citing a slower ramp up of manufacturing in China amid travel restrictions and an extended Lunar New Year break.
The Taiwanese firm, the main assembler of Apple’s iPhones, said it does not expect to see any revenue growth in the first half and a “mild downward revision” from original guidance of “slight growth” for the year due to the coronavirus.
While it did not give any details, Foxconn noted the virus’ impact would be short term and that so far the effect on its supply chain was “not that great”.
“Prevention of outbreak, resumption of work and production are our top priority,” Chairman Liu Young-Way told an online investor conference on Tuesday.
Overall manufacturing activity has been hobbled in China by travel curbs and quarantine requirements aimed at containing the coronavirus which can be transmitted from person to person.