Taiwanese electronics giant and Apple Inc (NASDAQ:AAPL, ETR:APC)’s iPhone production partner Foxconn is bracing for a fall in revenues as market demand slows for Apple’s cornerstone product.
Sluggish Chinese iPhone demand has been a pox on Apple and its partners of late, particularly in light of numerous rating downgrades from Barclays PLC (LSE:BARC) and Piper Sandler & Co.
Foxconn, known formally as Hon Hai Precision Industry Co Ltd, noted that the first quarter is typically a quiet one for tech following the bustling year-end holiday season.
However, the company struck a cautious tone in a Friday trading update while refraining from releasing specific financial forecasts.
The past year started on a high note for Foxconn, with revenues soaring to record levels in the first quarter, primarily fueled by the resurgence of factory operations post-COVID.
However, the tide has since turned, with the company reporting a 27% year-on-year decrease in December revenues.
Total fourth-quarter revenues fell 5.4%, primarily due to falling demand in the smart consumer electronics sector, where smartphone sales are tallied.
Foxconn has set 14 March as the date for its fourth-quarter earnings report, which will also include an updated financial outlook.