Foxconn Reports 11.65% Revenue Drop, Explores Opportunities in India

Foxconn, the biggest supplier for Apple, has reported an 11.65% fall in revenue in February 2023 compared to the same period last year, due to weak demand for electronics.

However, February’s revenue was still high, coming in at over $13 billion, making it the second highest figure for the month on record. The world’s biggest iPhone factory, located in Zhengzhou, China, is now recovering from Covid-19 disruptions, according to the company.

Foxconn also announced over the weekend that it is exploring opportunities in India, but did not confirm reports of a $1 billion investment in a major iPhone plant in Bengaluru that would create around 100,000 jobs.

Revenue from computing, smart consumer electronics, and cloud and networking products declined in February from the previous year, “due to conservative customers’ pull-in,” according to a statement by Foxconn. Despite this decline, the company expects the outlook for the first quarter of 2023 to be in line with market expectations.

Apple had previously warned in November that shipments of its new iPhone 14 would be delayed after Chinese officials locked down a district in Zhengzhou, where Foxconn’s mega-factory is located. The factory was also disrupted by protests two weeks later as thousands of workers left production lines.

In January 2023, Foxconn reported that revenue had increased by 48.2% from the previous year to hit a record high, as manufacturing in Zhengzhou returned to pre-pandemic levels.

Meanwhile, the company has responded to reports that it has agreed to significantly expand its operations in India, saying that it will continue to communicate with local governments to seek the most beneficial development opportunities for the company and all stakeholders.

Currently, iPhones are assembled in India by several Apple suppliers, including Foxconn, which assembles the devices at a site in Tamil Nadu.