TAIPEI (Reuters) – Foxconn, a major supplier to Apple, said on Friday it expects first-quarter revenue to fall from a year earlier after a slowdown in demand in the market in the previous quarter.
The first quarter of the year is traditionally quieter than the previous one, generally marked by increased demand for smartphones, tablets and other electronic products for the holiday season in Western markets.
Like previous years, this first quarter should be slower, the Taiwanese company said in a press release, but its turnover should record a decline compared to last year.
The company does not give figures.
Last year, turnover for the first three months reached a record level, driven by the resumption of factory activities following the COVID-19 pandemic.
Foxconn, officially called Hon Hai Precision Industry, said its turnover in December reached 460.1 billion Taiwan dollars (13.61 billion euros). A figure higher than forecast, although it is down 26.9% compared to the previous year.
Overall for the fourth quarter, revenue fell 5.4 percent year-on-year to NT$1.851 billion, exceeding the NT$1.827 billion forecast by LSEG estimates.
The company points in particular to the slowdown in demand in the market for consumer electronic products, such as smartphones.
The decline in demand for iPhones and other Apple products prompted two analysts to downgrade their recommendation on the stock, causing the American giant’s price to fall this week.
Foxconn will report its fourth-quarter results on March 14, when it will also update its outlook.
(Reporting by Ben Blanchard and Sarah Wu; French version by Gaëlle Sheehan, editing by Kate Entringer)
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