Foxconn Reports 3.9 Per Cent YoY Growth In Q1 Revenue, Says Q2 Sales May Fall

World's largest contract manufacturer and also the biggest manufacturing partner of Apple, Taiwan's Foxconn has said its revenue in the first quarter (Q1) of 2023 rose 3.9 per cent year-on-year.

World's largest contract manufacturer and also the biggest manufacturing partner of Apple, Taiwan's Foxconn has said its revenue in the first quarter (Q1) of 2023 rose 3.9 per cent year-on-year, but that sales for the current quarter would decline, the media has reported.

The company's revenue last month reached the third highest on record for March at T$400.3 billion ($13.14 billion), though that represented a 21.1 per cent year-on-year fall, the company said in a statement, according to news agency Reuters. It should be noted that over half of Foxconn's revenue comes from consumer electronics.

The rise in sales for the first three months of the year, to T$1.42 billion, was a fresh record high for the same period, and in line with previous guidance, Foxconn, formally called Hon Hai Precision Industry Co Ltd, said.

Foxconn mentioned that the outlook for the second quarter is likely to fall on a quarter-on-quarter and year-on-year basis, coming off a high base from an "unseasonally strong pull-in in the first half of last year which occurred as the components shortage from 2021 eased".

Meanwhile, the Taiwanese electronics major recently said it is committed to setting up a manufacturing facility in Kongara Kalan in the Indian state of Telangana. Chairman of Foxconn Technology Group, Young Liu, in a letter addressed to Telangana Chief Minister K Chandrasekhar Rao, confirmed the commitment of Foxconn to setting up its manufacturing plant in Kongar Kalan and sought the support of state team in operationalising the Kongar Kalan Park as early as possible, citing a release from the CMO PTI reported.

The Foxconn manufacturing facility in Telangana is likely to generate one lakh jobs in a decade.

This development came after a meeting between Young Liu, Chairman of Foxconn and K Chandrasekhar Rao, Telangana Chief Minister. Liu, who is on a tour of India, also met with Prime Minister Narendra Modi in February. The Telangana government and iPhone's contract manufacturer didn’t disclose the size of Foxconn's investment or specify products that it would make in the state, the Bloomberg report added.

Earlier in January, the company secured a new site in Vietnam, amid the Taiwanese giant's attempt to shift production away from China.