Taiwan’s Foxconn, which assembles iPhones for Apple, reported a better-than-expected third-quarter revenue on Friday, helped by sturdy smartphone demand as folks proceed to work remotely via the coronavirus pandemic.
However Foxconn, the world’s largest contract electronics maker, stated it expects fourth-quarter income in its key client electronics enterprise, which incorporates smartphones, to droop greater than 15 % from a yr earlier, with out providing a motive. It forecast total income to fall between 3 % and 15 %.
Foxconn beforehand stated it felt solely a small influence from the year-long international chip scarcity however had cautioned that rising COVID-19 circumstances in Asia may harm its provide chain.
Third-quarter income rose 9 % on the yr, Foxconn stated, reporting July-September internet revenue climbed 20 % from a yr in the past to TWD 36.98 billion (roughly Rs. 10,668 crore). That was above a Refinitiv consensus estimate of TWD 31.73 billion (roughly Rs. 8,492 crore).
Analysts had stated they anticipated sturdy iPhone gross sales boosted Foxconn’s enterprise within the third quarter, and the corporate secured greater than 75 % of meeting orders, together with these for the most recent iPhone 13. However they cautioned that offer chain issues may mute any additional near-term enhance in orders at Foxconn.
Apple stated final month that offer chain woes value the corporate $6 billion (roughly Rs. 44,673 crore) in gross sales throughout the July-September quarter, and that the influence would worsen throughout the year-end vacation interval.
“Within the quick time period, Hon Hai’s iPhone 13 shipments will proceed to be affected by the chipset scarcity, one thing that Tim Cook additionally confirmed” on an Apple earnings name, Fubon Analysis wrote in a be aware dated November 8.
© Thomson Reuters 2021
