Foxconn Expects Revenue Decline Amid Sluggish iPhone Sales

The world's largest electronics contract manufacturer diversifies supply chain amid weak post-pandemic recovery and geopolitical tensions.

Foxconn, the world's largest contract electronics maker and Apple's biggest iPhone assembler, expects a decline in first-quarter revenue for 2024, following a decrease in sales in the past three months.
Foxconn's December quarter revenue fell 5.4% year on year to NT$1.85 trillion (US$60 billion), but was up by 20% from the previous quarter. Total 2023 revenue was US$198.9 billion, down 7% from 2022.
The company's dim first-quarter outlook reflects concerns raised by investors of major client Apple about sluggish iPhone sales, which prompted the US tech giant to be hit by two ratings downgrades this week.
Foxconn has stepped up efforts to diversify its manufacturing supply chain for Apple and other clients amid the weak post-pandemic economic recovery in mainland China and rising geopolitical tensions between Beijing and Washington.
Foxconn won approval to invest at least US$1 billion more in a plant it is building in India that will make Apple products, on top of the US$1.6 billion it earlier pledged, according to a report by Bloomberg last month.