On Monday, Foxconn, the world’s largest contract electronics producer, and Apple Inc.’s iPhone assembler reported a 9.5% sales drop in May due to smart consumer electronics weakness amid the regular low season.
Foxconn (2317. TW), formerly Hon Hai Precision Industry Co Ltd., reported revenue of T$450.7 billion ($14.7 billion) last month, meeting expectations but up 5% from April.
The company’s smart consumer electronics goods, which include smartphones, saw revenue decline in May due to the “traditional slow season” and a high base.
Due to a strong base last year and “the seasonal off-peak period” during a product transition, it expects second-quarter business to fall.
Taiwan tech manufacturers, including Apple, typically unveil new goods in the second half of the year.
iPhone sales and growth in India and other emerging regions helped Apple (AAPL.O) surpass estimates for the quarter ending April 1.
Foxconn’s first-quarter net profit fell 56%, missing projections for the first time in three years. It wrote off $565 million related to its 34% interest in Sharp Corp (6753.T) and said the year’s visibility was limited.
Last week, Foxconn said artificial intelligence applications would heavily increase server demand this year, though it repeated that 2023 overall performance would be flat due to global economic concerns.
Foxconn shares are up 7.6% this year, underperforming the Taiwan market (.TWII) at 18.2%. On Monday, they fell 0.5% while the market rose 0.1%.
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