Reuters: Apple’s main supplier Foxconn spoke about problems in production
Foxconn announced problems in production and a decrease in profits. It is reported by Reuters.
Journalists refer to the report of the company’s top managers, according to which the company’s revenue in the current quarter may decrease. Foxconn attributed this to a slowdown in production growth amid inflation, lower demand, worsening problems with supply chains and quarantine in China.
Representatives of the corporation warned of a possible reduction in production, including due to a failure in the supply of components for Apple smartphones. “There are a lot of uncertainties in the market right now,” the company’s executives said. Foxconn also said that the COVID-19 pandemic and quarantine only partially affected the pace of production, as enterprises continue to operate in a “closed loop” mode. However, the restrictions had an impact on the decline in demand for products in the domestic market.
“The forecasts highlight the urgent need for the company to reduce its reliance on smartphones and consumer electronics, which account for just over half of its total revenue,” Reuters analysts said. According to experts, Foxconn may pay more attention to the production of spare parts for electric vehicles.
In mid-April, Foxconn announced that it was relaunching the iPhone. Earlier, the production of Apple smartphones stopped due to quarantine imposed due to the outbreak of coronavirus in China.