Apple-supplier Foxconn’s Revenue and Profits Tumble on Covid-19 Scare

Foxconn Technologies

Apple-supplier Foxconn’s Revenue and Profits Tumble on Covid-19 Scare

The world’s biggest contract electronics assembler Foxconn Technology Group announced that its net profit fell 23.7% in the fourth quarter before the coronavirus pandemic struck the company, along with its largest customer, Apple Inc.

The Taiwan-based company’s net profit for the fourth quarter, which ended in December, was 47.8 billion new Taiwan dollars ($1.6 billion), according to a calculation by The Wall Street Journal, based on full-year figures released by the company on March 30. That was slightly higher than the NT$46.3 billion average estimate of analysts polled by S&P Global Market Intelligence. The company reported a net profit of NT$62.6 billion in the year-earlier period. Foxconn, however, gave no reason for the decline. The revenue for the quarter fell 3.8% to NT$1.74 trillion.

Foxconn is best known for assembling Apple’s iPhones, among other products, mostly in China. It relies on Apple for about half of its revenue, according to analyst estimates.

Apple’s revenue rose 9% in the December quarter to $91.8 billion, driven by increased sales of devices and services connected to the iPhone. Sales of iPhones, which account for more than half of its revenue, rose 8% to nearly $56 billion.

Apple has also been badly hurt by the coronavirus pandemic. In China, where the health crisis began, Foxconn and other suppliers closed factories, which eroded iPhone supplies. Apple also had to shut down its stores there. As the epidemic reached Europe and the U.S., Apple had to shutter its stores and halt nearly all activity at its Silicon Valley campus.