Foxconn January sales hit record high after production restored at world’s biggest iPhone factory
Hong Kong
CNN
—
Apple supplier Foxconn says its January sales hit a record high as it recovered from Covid-19 disruption in China.
in one sales update on Sunday, the Taiwanese manufacturing giant reported NT$660.4 billion ($22 billion) in sales for January, 48 percent higher than the same period a year ago and the highest level since so far in that month. Revenue increased nearly 5% month-on-month.
The manufacturer attributes its performance to a strong rebound at its vast campus in Zhengzhou, central China.
The site, which is home to The world’s largest iPhone factorywas crippled late last year by Covid-19 restrictions and worker protests.
Currently, operations there are “returning to normal” and product shipments have skyrocketed, Foxconn said.
The company also said a “better supply of components” helped boost sales.
Two of Foxconn’s most watched divisions: smart consumer electronics, include both smartphones and televisions, and computer products, including laptops and tablets, “showed strong double-digit growth,” the report said.
The figures underline how Foxconn’s Zhengzhou campus, also known as “iPhone city,” is getting back up and running after major setbacks.
company’s difficulties starting in october, when workers left the construction site because of concerns about Covid-related working conditions and food shortages. Short of staff, bonuses were later offered to returning workers.
But the violent protests break out in November, when the newly hired employee said management had broken a promise. The workers clashed with security officers, before the company finally offered them cash to quit and leave the site.
The headaches have led analysts to predict that Apple will likely speed up production. supply chain diversification away from China.
Last week, Apple
(AAPL) points to challenges in China as an important factor in Earnings less than expected.
CEO Tim Cook said the company’s problems in the country affected the supply of iPhone 14 Pro and iPhone 14 Pro Max during the critical shopping season.
Since then, Foxconn has managed to stabilize operations at its facility. Last month, Chinese state media report that the Zhengzhou plant was almost back to normal, reaching 90% capacity by the end of December.
The company also expressed confidence for the road ahead. On Sunday it says in a declare that its outlook for the first quarter will likely meet analyst expectations without providing specifics. Analysts polled by Refinitiv expect the company’s revenue to grow 4% between January and March.
Shares of Foxconn were up 1.9% in Taipei on Monday.
— CNN’s Wayne Chang and Juliana Liu contributed to this report.
