Hon Hai Precision (Foxconn) revised earnings expectations for Q4 down following a spike in Covid-19 (coronavirus) cases at its largest iPhone assembly facility in China and a move to closed-loop production, moves Apple separately stated would impact output.
Foxconn changed is previous cautiously optimistic Q4 outlook due to the pandemic affecting some operations in Zhengzhou.
In a monthly earnings update, Foxconn noted it is working with the government “to stamp out the pandemic and resume production to its full capacity as quickly as possible”.
Apple stated restrictions on Foxconn’s facility significantly reduced capacity, with the vendor warning of “lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products”.
The Zhengzhou plant is the primary assembly facility for the two models.
Foxconn reported continued growth in October, with sales in the month up 41 per cent year-on-year to TWD776.6 billion ($24.2 billion).
For the first ten months, revenue grew 16.9 per cent to TWD5.4 trillion, a record for the company.
Its cloud and networking products, smart consumer electronics and computing products registered double-digit growth, while components and other products booked significant increases.
Foxconn reports full Q3 results on 10 November.Subscribe to our daily newsletter Back