Home Cryptocurrency Foxconn Says April Sales Drop 12% due to Decline in Smartphone Shipments

Foxconn Says April Sales Drop 12% due to Decline in Smartphone Shipments

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The growth of artificial intelligence technology is expected to increase the overall demand for high-speed electronic devices.

Foxconn Technology Co Ltd (Taiwan: 2354), one of the largest global employers in the electronics manufacturing industry and a key supplier to Apple Inc (NASDAQ: AAPL), posted 11.77% year-on-year sales growth in April announced a decrease. However, the company’s revenue was in line with previous estimates of NT$429.2 billion (about $14 billion). The Taiwanese electronics company expects sales to decline this quarter as smartphone shipments decline.

However, the company plans to report first-quarter results on May 11, when it plans to release full-year guidance. According to the company’s unaudited consolidated monthly earnings report for April, smart appliance revenue saw his double-digit growth. In addition, the company noted that his cumulative revenue for the first four months of 2023 was NT$1,891.9 billion, down about 0.14% year-on-year.

“The decline in smartphone shipments in Q1 2023 is the first Q1 decline since 2019, driven by higher inventories, weaker demand and inflation,” analyst at Industry Intelligence Group Cybermedia Research. , Shipra Sinha, said the overall feature phone segment was down 19% year-over-year. I got it.

Foxconn Sales and Market Outlook

The company relies heavily on global consumption of new products, especially from Apple. Foxconn forecasts higher wages as high inflation reduces the dollar’s purchasing power. But the company hopes Apple’s entry into the Indian market will improve quarterly sales. Moreover, although India is considered an emerging market with high demand for electronics due to its large population, smartphone shipments fell by 21% year-on-year in the first quarter.

Nevertheless, Apple posted first-quarter revenue of about $94.8 billion, down 3% year-on-year. Foxconn expects sales to decline in the second quarter as the global smartphone industry transitions from older to newer products. Additionally, Apple’s new products, among other manufacturers, are expected to launch at the end of the year as usual, just in time for the holiday season.

Notably, Falcon’s share price has fallen about 3% over the past month, trading at around NT$ 53.80 on Friday. Nonetheless, it was a volatile day for the electronics industry as a whole, with most falling about 3% in his day.

Overall picture

The growth of artificial intelligence technology is expected to increase the overall demand for high-speed electronic devices. Already, Microsoft Corporation (NASDAQ: MSTR), one of his key Foxconn customers in North America, has made significant strides in his AI development through collaboration with OpenAI. As a result, Foxconn sees profits several years ahead, despite short-term constraints.

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