Foxconn claims worst is over at China iPhone plant - Mobile World Live

Foxconn claims worst is over at China iPhone plant

06 DEC 2022

Hon Hai Precision (Foxconn) suffered a rare decline in revenue in November following an outbreak of Covid-19 (coronavirus) at its largest iPhone assembly facility in China, but insisted the overall situation was under control.

In a statement, the contract manufacturer noted it began re-allocating production capacity to different factories, started to recruit new employees and is gradually moving towards restoring capacity to normal.

Foxconn added the outlook for Q4 is expected to be roughly in line with market consensus.

A 11.4 per cent year-on-year drop in revenue in November to TWD55.1 billion ($1.8 billion) was its first monthly decline since a 2.8 per cent fall in April and comes after it reported more than 40 per cent growth in September and October.

Despite the drop, for the first 11 months revenue grew 13.6 per cent to TWD6 trillion, a record for the company.

The company attributed a decrease in its smart consumer electronics revenue to production gradually entering the off-peak season and some shipments impacted by disruptions at its plant in Zhengzhou, China.

A month ago, Foxconn lowered its earnings expectations for Q4 after a rise in Covid-19 cases at the iPhone facility.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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