iPhone Manufacturer Foxconn Warns Of Revenue Decline Amid Slowing Demand, Supply Chain Issues

Apple's contract manufacturer Foxconn has warned that revenue could fall in this quarter, courtesy of the declining demand in locked down China and supply chain issues.

New Delhi: Apple's contract manufacturer Foxconn has warned that revenue could fall in this quarter, courtesy of the declining demand in locked down China, inflation and the growing supply chain issues. The Taipei, Taiwan-headquartered company said that it would diversify to reduce its dependence on smartphone assembly, the media has reported. Owing to the global supply chain issues and the severe shortage of chipsets, Foxconn, among other global manufacturers has been badly affected.

“There are many uncertainties in the market at the moment," Foxconn Chairman Liu Young-way told a post-earnings call, citing the pandemic, geopolitical risks and inflation among them for the year, according to a report by news agency Reuters.

“They are presenting quite some challenges to demand and supply," Young-way added.

Earlier this month, Apple had decided to start production of the upcoming iPhone 14 models earlier than usual and to keep up with Apple's preparations to ensure that the iPhone 14 series launch is not delayed, Foxconn reportedly went on a massive hiring spree in China and was offering bigger bonuses. According to a report published by United Daily News, Foxconn generally does not recruit iPhone workers at this time of year, but being since the company's main iPhone assembly units are located in China's Zhenzhou city which has thus far escaped full Covid-19 lockdowns, Apple wants to boost capacity there to balance out lost production elsewhere in China.

According to a report by DigiTimes, the iPhone maker's supply chain may be severely impacted depending on how long lockdowns persist, potentially even forcing the company to delay the launch of the upcoming iPhone‌ 14 series later this year.