Foxconn, the maker of Apple Inc (NASDAQ:AAPL)’s iPhones, has issued caution as demand for smartphones falters on the back of economic uncertainty.
Though the Taiwan-based supplier beat analysts’ expectations, a 1% drop in second-quarter net profit to T$33 billion (US$1.0 billion) was the best it could muster owing to the slump.
“At present, there are many external variables: global monetary policy tightening, geopolitical tensions, inflation and other uncertainties,” chairman Liu Young-way said.
Following Apple’s own forecast of falling sales for the quarter ahead, Foxconn said it anticipates revenue from consumer electronics will continue declining.
Smartphones make up roughly half of the company’s revenue, with Foxconn the supplier of some 70% of the world’s iPhones.
Liu did indeed point to growth in its artificial intelligence (AI) business, but warned there had been no uptick for any of its other products yet, as China’s slow post-Covid recovery also weighs in.
Shares in the company slipped 0.7% to T$55.70 on the news.