Key iPhone Assembler Foxconn's Q2 Revenue Falls 1 Per Cent Due To Weak Demand For Electronics

Foxconn also said it expected revenue for its smart consumer electronics products to slightly fall year on year (YoY) in the third quarter (Q3).

This comes amid weak demand for electronics globally.

Source : Getty

Key iPhone assembler Foxconn has reported one per cent fall in its second quarter (Q2) net profit amid weak demand for electronics globally. The company, also the world's largest contract electronics manufacturer, beat analysts' forecasts - its net profit for the April-June quarter fell to T$33 billion (or $1.0 billion) from a revised T$33.29 billion in the same period last year. The company performed better than the average forecast of TWD 25.57 billion (or Rs 6,648 crore) profit from 13 analysts, according to Refinitiv, as reported by news agency Reuters.

This comes amid Foxconn's investments in India. The company's EV platform unit Mobility in Harmony is also eyeing Thailand or India to build its new car facility for manufacturing a new three-seat EV priced below $20,000.  

Foxconn also said it expected revenue for its smart consumer electronics products to slightly fall year on year (YoY) in the third quarter (Q3). That group includes smartphones and makes up about half of Foxconn's total revenue. The report quoted the company as saying that the overall revenue for Q3 would also decline slightly, downgrading its outlook for full-year revenue to a slight decline from previous guidance for coming in flat.

Foxconn shares rose 1.4 per cent ahead of the results on Monday, compared to a 1.3 per cent fall in the main market. Its shares have risen 10 per cent so far this year.

The key Apple iPhone supplier is set to invest $600 million, or roughly Rs 4,955 crore in India, said a report by news agency Reuters, earlier this month. Taiwan's Foxconn will invest in the Southern Indian state of Karnataka for chip equipment manufacturing and casing components for iPhones. Foxconn's investment is expected to generate roughly 12,000 jobs. Some $350 million, or roughly Rs 2,890 crore will go towards setting up the Apple iPhone component facility, while Foxconn will tie up with Applied Materials in a $250 million, or roughly Rs 2,064 crore project to make chip-making tools, Reuters had reported.