Apple Supplier Foxconn Expects 15 Percent Slump in Q4 Revenue After Strong Q3 Profit


Taiwan’s Foxconn, which assembles iPhones for Apple, reported better-than-expected third-quarter profit on Friday, helped by strong smartphone demand as people continue to work remotely through the coronavirus pandemic .

but FoxconnThe world’s largest contract electronics maker said it expects fourth-quarter revenue in its key consumer electronics business, which includes smartphones, to drop more than 15 percent from a year ago, without assigning any reason. It has projected a decline of between 3 per cent and 15 per cent in total revenue.

Foxconn previously said it felt only a small impact from the year-long global chip shortage, but cautioned that there is a growing COVID-19 Cases in Asia could damage its supply chain.

Third quarter revenue jumped 9 per cent, Foxconn said, with net profit up 20 per cent to Rs 36.98 billion (about Rs 10,668 crore) in its July-September report from a year ago. This was above the Refinitiv consensus estimate of TWD 31.73 billion (about Rs 8,492 crore).

Analysts had said they expected a stronger iPhone Sales boosted Foxconn’s business in the third quarter, and the company achieved more than 75 percent of assembly orders, including the latest orders. iphone 13, But he cautioned that supply chain problems could mutate any more near-term growth in orders at Foxconn.

Apple The company said last month that the supply chain crisis caused sales of $6 billion (about Rs 44,673 crore) for the company during the July-September quarter and the impact would worsen during the holiday period at the end of the year.

“In a very short span of time, Hon Hai Chipset shortage will continue to affect iPhone 13 shipments, something like this Tim Cook “Also confirmed on Apple earnings call,” Fubon Research wrote in a note dated November 8.

© Thomson Reuters 2021