Key Apple supplier Foxconn sees revenues slump as demand slows

Foxconn, the world’s largest technology manufacturer and a major supplier of Apple products saw its revenues slump by 11.65 per cent in February 2023 compared to the previous year due to slowing demand for electronics.

Despite the drop, revenues still surpassed the $13 billion (€12.2 billion) mark, resulting in its second-highest figure for the month.

The manufacturer was overall optimistic as its statement read, “based on the revenue performance in the first two months, the outlook for the first quarter is roughly in line with market expectations.”

While the company attributed the decline in revenues to slowing demand, in 2022 Foxconn’s factories were affected by regular strict lockdown measures imposed by China’s Government led to shipment delays and shortages that can still be felt today.

The latest lockdown which took place in November 2022 led to protests by thousands of workers which severely impacted manufacturing.

As protests started spread nationwide, China’s Government u-turned and scrapped its zero-COVID policy the following month.

In absence of draconian COVID-19 restrictions, Foxconn saw its revenues increase by nearly 50 per cent in January 2023 compared to the previous year as manufacturing returned to pre-pandemic levels.

The manufacturer is reportedly considering expanding outside of China and Taiwan to India, by building a major iPhone plant in the country through a $1 billion (€939.6 million) investment which would lead to 100,000 new jobs.