Foxconn tops estimates, but Apple iPhone partner warns of slowing smartphone demand

Aug. 10, 2022 7:18 AM ETFoxconn Technology Co., Ltd. (FXCOF), AAPLBy: Chris Ciaccia, SA News Editor12 Comments

Foxconn Shanghai Facility

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Foxconn (OTCPK:FXCOF) reported a 12% rise in net profit and revenue for the June quarter on Wednesday, aided in part by strong sales of Apple's (NASDAQ:AAPL) iPhone, but the Taiwanese company gave a cautious outlook for the upcoming quarter, citing slowing smartphone demand.

Foxconn, which manufactures Apple's (AAPL) iPhones, said that rising inflation would only have a limited impact on mid and high-end smartphones, according to Reuters, but that demand for some devices would decline after seeing "significant growth."

"On the whole, we are slightly more cautious about the third quarter, but compared to the same period last year, we could still see growth," Foxconn (OTCPK:FXCOF) Chairman Liu Young-way said on a conference call following the results, according to Reuters.

Regarding supply chain disruptions, Foxconn (OTCPK:FXCOF) added that the second half of 2022 would be better than the first half if there were no other geopolitical issues.

Looking ahead, Foxconn (OTCPK:FXCOF) added that cloud and networking products are expected to be strong in the upcoming quarter and said overall revenue would grow this year.

Liu also said that Foxconn (OTCPK:FXCOF) would abide by the law after Taiwanese government officials asked the company to drop its $800M stake in Chinese semiconductor maker Tsinghua Unigroup.

In late July, Foxconn's (OTCPK:FXCOF) Shenzhen, China plant was asked to operate inside a "closed loop" for seven days as the city battled another outbreak of COVID-19.

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