Foxconn reports 10% profit drop, says demand is falling

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Foxconn, a major supplier of Apple’s iPhone, saw its profits fall by a tenth in the latest quarter from a year earlier.

Foxconn has invested in expansion in China, Vietnam and India, but its latest quarter’s earnings included both a 10% decline and a flat revenue forecast.

Agreed Reuters:, Foxconn reported on its financials during an earnings call led by its chairman Liu Yangwei. The company said it expects significant growth in many areas, but not consumer electronics.

“We maintain a relatively conservative view on smart consumer electronics, and we think they may decline slightly,” said Liu Yang Wei.

The company attributes this to inflation and a slowdown in the global economy

However, it expects overall computing demand to rise, and particularly for its cloud, network and component products.

In the past, Foxconn has seen its revenues cut due to restrictions related to COVID during what should have been the busiest period for iPhone 14 production. However, those restrictions have now been lifted.

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