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Foxconn's January sales surge as China COVID disruption shaken off

Published 02/05/2023, 02:52 AM
Updated 02/05/2023, 03:10 AM
© Reuters. FILE PHOTO: The logo of Foxconn is seen outside the company's building in Taipei, Taiwan, Nov. 10, 2022. REUTERS/Ann Wang
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TAIPEI (Reuters) -Taiwan's Foxconn, the world's largest contract electronics maker and major iPhone assembler for Apple Inc (NASDAQ:AAPL), said on Sunday its revenue in January jumped 48.2% year-on-year, as it shook off COVID disruptions in China.

Revenue in January reached a record high, at T$660.4 billion ($22 billion), with operations returning to normal and shipments increasing at its Zhengzhou campus in China, a centre for iPhone production, the company said in a statement.

Compared to the previous month, revenue was up 4.93% with smart consumer electronics products, which includes smartphones, and computing products showing strong double-digit growth, it said.

Production of iPhones faced disruption ahead of Christmas and January's Lunar New Year holidays, after curbs to control COVID-19 prompted thousands of workers to leave Foxconn's factory lines in Zhengzhou.

Analysts say Foxconn assembles around 70% of iPhones, and the Zhengzhou plant produces the majority of its premium models including the iPhone 14 Pro.

"Based on market consensus for first quarter 2023, January revenue came in slightly ahead. The outlook for the first quarter will likely reach market expectation," Foxconn said without elaborating.

Analysts expect first-quarter revenue to grow by around 4% year-on-year, according to Refinitiv.

Apple on Thursday forecast its revenue would fall for a second quarter in a row but that iPhone sales were likely to improve as production had returned to normal in China after the COVID-related shutdowns.

Foxconn shares have slid 0.3% so far this year, underperforming the broader Taiwan market which is up 10.4%.

© Reuters. FILE PHOTO: The logo of Foxconn is seen outside the company's building in Taipei, Taiwan, Nov. 10, 2022. REUTERS/Ann Wang

The company reports fourth quarter earnings, where it will also elaborate on its outlook, on March 15.

($1 = 29.9660 Taiwan dollars)

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