Selection subject apple supplier Foxconn reported a 10% year-on-year decline in 2022 profits and expects lower demand for consumer electronics over the next year, the company said in its earnings report on Wednesday. .
Negative sentiment reflects Apple’s modest expectations for consumer sales. When Apple reported its first-quarter 2023 results, Chief Financial Officer Luca Maestri said next he expects Mac and iPad sales to hit double digits year-on-year in the March quarter. He said he expects it to decline. The company added that iPhone sales declined less in the March quarter compared to the December quarter.
Foxconn will continue to expand its presence beyond mainland China and said opening new markets is a top priority for the company in 2023. Earlier this year, Foxconn pledged to significantly expand its presence in India.
Foxconn beat analysts’ top-line estimates for the full year with a record CNY 511.85 billion, according to FactSet, but posted a net profit of 20 billion yuan, while the consensus estimate was CNY 493.95 billion, according to FactSet. did not reach 70 million yuan.
Taiwan-based Foxconn is a leading manufacturer of consumer technology companies, but is best known for its relationship with Apple. Apple relies on Foxconn to manufacture and assemble products such as his iPhone.
Foxconn’s Zhengzhou iPhone manufacturing facility has made headlines in late 2022 after a video of Foxconn employees fleeing the facility amid the severe covid lockdown circulated around the world.The Chinese government has since , has withdrawn its most aggressive Covid protocols, but Apple and other major tech companies are stressing to their suppliers the need to diversify beyond China.
Demand for electronic goods has slowed dramatically as consumers grapple in large part with the realities of a post-pandemic world. Global macroeconomic uncertainty has also weakened discretionary income, making it difficult for businesses to sustain the rapid pace of growth enjoyed in 2020 and late 2021.
An Apple spokeswoman declined to comment.