Contract manufacturer Foxconn stood by an earlier optimistic Q2 revenue guidance after sales in March rebounded, following sharp year-on-year declines in the first two months of 2024.

Q1 revenue fell 9.6 per cent year-on-year to TWD1.3 trillion ($40.5 billion). The company highlighted growth in cloud and networking products in the quarter, but added PC sales were flat and consumer electronics products declined.

The manufacturer expects revenue growth in the current quarter, which is part of a traditional off-peak season with major product lines entering a period of transition between old and new offerings. 

In its Q4 earnings call last month, chairman and CEO Young Liu forecast “significant” growth in full-year sales despite an expected sales drop in Q1.

Major customer Apple is facing weaker demand for iPhones, driven mainly by a decline in China. 

February data from the China Academy of Information and Communications Technology showed shipments of non-Chinese brand smartphones, with Apple’s iPhone accounting for the vast majority, dropped 31.7 per cent year-on-year to about 2.4 million units.