Apple IncAAPL supplier Foxconn on Monday reported a 4% fall in quarterly profit as the Taiwanese contract electronics maker speeds up the shift towards electric vehicles, Bloomberg reported.
What Happened: Hon Hai Precision Industry Co’s HNHPF, popularly known as Foxconn, net income for the fourth quarter ended December, fell to NT$46 billion ($1.6 billion) missing analyst estimates of NT$50.2 billion, according to the report.
Foxconn’s revenue grew 15% to NT$2 trillion ($70.13 billion) led by the iPhone 12 series, launched last year, and elevated demand for home computing due to the pandemic.
See Also: How to Buy Foxconn Stock in the U.S.
The Taiwanese company is however looking at other growth opportunities and is known to have identified electric vehicles as a key emerging industry. Foxconn announced plans to develop EVs with Fisker Inc FSR even as numerous speculations have emerged over who could be Apple’s potential partner for its rumored self-driving electric vehicle foray.
Why It Matters: The company had previously forecast fourth-quarter revenue to be in a range of a decline of 3% and gain of 3% from a year earlier.
Foxconn has been looking to strengthen its automotive capabilities at a time when its biggest client is seeking a foray in the electric vehicle space. Not just Foxconn joins a host of tech companies looking to make electric vehicles.
Price Action: Shares of Apple closed 0.15% higher, Fisker shares closed 6.25% lower and Byton 4.4% lower on Monday.
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