Taiwan’s Foxconn, the largest contract electronics manufacturer globally and a significant supplier for Apple, reaffirmed its earlier projection of robust sales during the year-end holiday season. The company mentioned that customers in both China and the United States were making substantial purchases.
A shareholder of Foxconn is photographed during the company’s annual shareholder meeting in New Taipei City, Taiwan, on May 31, 2023.
The fourth quarter typically represents the peak season for Taiwanese tech firms, as they strive to meet the demand for smartphones, tablets, and other electronic devices from major clients like Apple for the Western holiday season.
Foxconn, in an official statement, expressed that the second half of the year is traditionally a period of increased activity for consumer tech products, and they will progressively scale up operations as previously indicated in their outlook from the prior month.
They also noted that their substantial growth expectations for the fourth quarter, when compared to the third quarter, remain unaltered, although they did not provide further details.
Foxconn, also known as Hon Hai Precision Industry Co Ltd, reported that their revenue for the previous month amounted to T$741.2 billion ($23.09 billion), making it the second-highest October revenue on record. This figure represented a 4.56% decrease compared to the previous year, attributed to a high base in the previous year, and a 12.2% increase from September.
Foxconn reported noteworthy month-on-month growth in revenue from its smart consumer electronics, particularly smartphones. This surge was attributed to increased demand driven by the introduction of new products. It coincided with the upcoming China Singles Day shopping event this month and the Thanksgiving holidays in the United States.
It’s worth noting that Foxconn is the largest assembler of Apple’s iPhones. Apple, which unveiled a new series of iPhones in September, provided a sales projection for the holiday quarter on Thursday that fell short of Wall Street’s expectations, mainly due to sluggish demand for iPads and wearables.
Foxconn will unveil its third-quarter financial results on November 14, providing further insights into its projections.
On the day prior to announcing its October sales figures, Foxconn’s shares listed on the Taipei stock exchange closed with a 1.2% decline, while the broader market saw a 0.7% increase (.TWII). So far this year, Foxconn’s shares have decreased by 4%, resulting in a market valuation of $41.5 billion.
(Conversion rate: $1 = 32.0980 Taiwanese dollars)
Reported by Ben Blanchard; Edited by David Goodman and Christopher Cushing
