This follows disruptions in production ahead of the Christmas and Lunar New Year holidays due to COVID-19 restrictions, which caused thousands of workers to leave Foxconn's factory lines in Zhengzhou, China. Although December revenue was down 12.3% year-over-year, the company stated that it was better than expected and marked the start of a recovery.
Foxconn's Smart Consumer Electronics Business Sees Double-Digit Growth in December
Foxconn reported double-digit growth in revenue for its smart consumer electronics business in December compared to November. This growth was attributed to the "gradual recovery" at the company's Zhengzhou plant, which assembles around 70% of iPhones, including most of its premium models, such as the iPhone 14 Pro. A Foxconn source, who requested anonymity, stated that this growth compared to the previous month showed that major client Apple did not cut orders. The source also noted that the yearly decline in revenue was due to a high base from the previous year when demand for smartphones increased after the initial impact of the pandemic.
Foxconn Expects Q1 Revenue "To Be Roughly In Line with Market Consensus"
Foxconn reported a 10.47% increase in revenue for 2022, reaching a record high, driven by growth across its major product lines, including smartphones and servers. In the fourth quarter, the Zhengzhou plant faced strict COVID-19 restrictions and worker unrest over pay and conditions. The company has offered bonuses to attract new workers and retain current employees. Foxconn stated that it expects first-quarter revenue "to be roughly in line with a market consensus" without elaborating further. Analysts predict a 5.6% year-over-year increase in first-quarter revenue, according to Refinitiv. Foxconn shares closed down 0.1% on Thursday.
