Apple, Inc. AAPL supplier Hon Hai Precision Manufacturing Company Limited HNHPF on Sunday reported monthly revenue for February that declined from the year-ago period and the previous month.
What Happened: Taipei, Taiwan-based Hon Hai, which is widely known as Foxconn, said its February revenue fell 11.65% to NT $402.04 billion ($13.18 million). On a month-over-month basis, the decline was a steeper 39.12% from NT $660.36 billion.
Cumulative revenue for the first two months of the year totaled NT $1.06 trillion, up about 18% year-over-year and representing a record total for the period, the company said in a statement. The previous record for the first two months of the year was the NT $902.1 billion reported for 2021.
See Also: How To Buy Foxconn Stock In The US
The company noted that its smart consumer electronics products operation, which is levered to Apple, returned to normalcy, as shipments increased in January following China abandoning its zero-COVID-19 policy in late December. Due to conservative customers’ pull-in, revenue for this segment declined year-over-year in February, the company added.
Based on the revenue performance in the first two months of the year, Hon Hai said the first-quarter outlook is roughly in line with market expectations.
Why It’s Important: Foxconn reportedly assembles about 70% of Apple’s iPhones, and the drop in February revenue will likely portend more softness for Cupertino in its fiscal year second quarter.
The tech giant reported last month, first-quarter revenue that fell year-over-year and missed the consensus estimate, with iPhone revenue declining.
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