Company Supplying Chips to Apple Records Sharp Drop in Revenue

(Patria) - Taiwanese chip manufacturer Foxconn reported a sharp drop in revenue in February, highlighting weak demand for electronics.

Foxconn's revenue fell by 11.65 percent in February compared to the same month last year, to 13 billion dollars.

The company, also officially known as Hon Hai Precision Industry, pointed to reduced revenue from the sale of chips for computers and "smart" consumer electronics and "due to the restraint of conservative clients".

"Based on the revenue results for the first two months, the outlook for the first quarter of 2023 is roughly in line with market expectations," they added.

Foxconn supplies chips to Apple and points out that operations at its plant in the Chinese city of Zhengzhou, the world's largest iPhone factory, are recovering from disruptions caused by the COVID-19 pandemic.

In November, Apple warned that deliveries of the new iPhone 14 would be delayed after Chinese officials announced a lockdown in Zhengzhou, the municipality where Foxconn's mega-factory is located, the BBC recalls.

Two weeks later, protests broke out at the factory, disrupting production as thousands of workers left the assembly lines.

In January, the Taiwanese chip manufacturer announced that its revenue at the beginning of the year jumped by 48.2 percent, reaching a record level thanks to the normalization of production in Zhengzhou, which returned to pre-pandemic levels, Hina reports.

Meanwhile, media reported that the company plans to invest up to one billion dollars in a large iPhone factory in Bengaluru.

Some reports indicated that this investment in India would create about 100,000 jobs. The company only stated yesterday that it is exploring business opportunities in India.

iPhone mobile phones are currently assembled in India by several Apple suppliers, including Foxconn, the BBC notes.