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

Taiwanese firm Foxconn, which assembles iPhones for Apple, reported better-than-expected third-quarter results on Friday, helped by strong demand for smartphones as people work away from the coronavirus epidemic.

However, Foxconn, the world’s largest maker of contract electronics, expects fourth-quarter revenue, including smartphones, to fall more than 15 percent year-on-year for no apparent reason. Total sales should fall between 3 and 15 percent.

Foxconn previously said it was feeling the effects of a year-long global chip shortage, but warned that rising Covid-19 cases in Asia could affect supply chains.

Revenue rose 9 percent year-on-year in the third quarter, Foxconn said, adding that net profit for July-September rose 20 percent year-on-year to TWD 36.98 billion (approximately Rs.10,668). This is higher than Refinitiv’s consensus estimate of TWD 31.73 billion (approximately Rs.8,492 billion).

Analysts said Foxconn’s business was driven by strong iPhone sales in the third quarter, with the company receiving more than 75 percent of assembly orders, including orders for the new iPhone 13. However, he warned that supply chain problems would increase in the future. Foxconn orders increase.

Apple said last month that supply chain problems hit the company 6 billion in the July-September quarter.

“In the short term, shipments of the iPhone 13 Hon Hai will continue to be impacted by chipset shortages, as confirmed by the Cook team,” Fubon Research wrote on November 8 in a press release about Apple’s gift request.