Apple's Key Supplier Foxconn's December Revenue Falls Over 12%

Apple's Key Supplier Foxconn's December Revenue Falls Over 12%
  • Largest contract electronics maker Hon Hai Precision Industry Co Ltd HNHPF Foxconn's December revenue dropped 12.3% year-on-year to NT$629.34 billion.
  • Foxconn said revenue for December was better than expected and that a "gradual recovery" at its Zhengzhou plant had contributed to "double-digit growth" in revenue for its smart consumer electronics business compared to November.
  • Foxconn said production at the factory in China "basically returned to normal" in December.
  • The "significant growth" in December compared to the month prior for its consumer electronics business, including smartphones, showed that significant client Apple Inc AAPL did not cut orders for its popular iPhones, Reuters reports.
  • Foxconn's major iPhone factory in China's Zhengzhou city suffered production problems related to COVID-19 controls.
  • Revenue for 2022 rose 10.47% Y/Y to a record high, driven by growth across major product lines from smartphones to servers.
  • In the fourth quarter of 2022, the Zhengzhou plant grappled with strict COVID-19 restrictions that fueled workers' discontent over factory conditions.
  • Production of the Apple device faced disruption ahead of Christmas and January's Lunar New Year holidays after the pandemic prompted thousands of workers to leave, followed by worker unrest over payment issues.
  • Foxconn doled out bonuses to attract new workers and convince those still there to stay on. 
  • Analysts say Foxconn assembles around 70% of iPhones, and the Zhengzhou plant produces most of its premium models, including the iPhone 14 Pro.
  • Photo via Wikimedia Commons

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