Foxconn September sales down, but optimism remains about Q4 holiday boost

Fourth quarter is traditionally hot season for Taiwan's tech companies

Livemint, Edited By Jocelyn Fernandes (with inputs from Reuters)
Published5 Oct 2023, 04:51 PM IST
The fourth quarter should see significant growth compared to the third quarter, it said (Image: Reuters)
The fourth quarter should see significant growth compared to the third quarter, it said (Image: Reuters)

Foxconn has registered low sales numbers in September, but the company remains optimistic about a numbers boost during the subsequent Q4 holiday season, Reuters reported on October 5. The year-end quarter is traditionally the “hot season” for Taiwan's tech companies, it added. 

“The second half of the year is a traditional peak season for consumer tech products, and operations will ramp up sequentially. The fourth quarter should see significant growth compared to the third quarter,” Foxconn said in a statement on October 5.

Also Read: Foxconn to double workforce, investment in India by ‘this time next year’

Foxconn or Hon Hai Precision Industry is the world's largest electronics maker. It is also a major supplier for Apple - whose newly launched iPhone includes an improved chip, titanium case and video game capabilities. Price however remains unraised, reflecting the global smartphone slump, the report notes. 

Performance

In August's Q2 earnings, the manufacturer exceeded estimates largely due to the artificial intelligence (AI) boom, but global uncertainties have pulled numbers down in Q3. September revenues slumped 19.7 percent year-on-year (YoY) to $20.46 billion. It was, however, up month-on-month from August by 60.1 percent. 

Watch: Foxconn Doubles Down On Its India Plans | Details

Q3 revenues slipped 11.7 percent YoY, but jumped 18.4 percent quarter-on-quarter (QoQ). “Revenue in smart consumer electronics products, including smartphones, saw strong growth MoM due to new product launches in September,” Foxconn said.

While largely an iPhone contractor, Foxconn has also diversified into electric vehicles (EVs), and said that rising shipments of auto components contributed to significant year-on-year growth for its components and other products business in September.

Also Read: India can develop manufacturing ecosystem faster than China: Foxconn chairman Liu

Foxconn's Taipei-listed shares closed up 0.5% on Thursday ahead of the release of its September sales, compared with a 1.1% gain for the broader market. Foxconn shares have risen 3.6% this year, giving it a market value of $44.1 billion.

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First Published:5 Oct 2023, 04:51 PM IST
HomeCompaniesNewsFoxconn September sales down, but optimism remains about Q4 holiday boost

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