Foxconn Expects Rebound in Q2

Foxconn didn't change optimistic Q2 revenue guidance after sales in March rebounded, following sharp declines in the first two months of 2024. Q1 revenue fell 9.6% year-on-year to TWD1.3 trillion ($40.5 billion). The company highlighted growth in cloud and networking products in the quarter, but PC sales were flat and consumer electronics declined.

The manufacturer expects revenue growth in the current quarter, which is part of a traditional off-peak season with major product lines entering a period of transition between old and new offerings. In its Q4 earnings call last month, chairman and CEO Young Liu forecast significant growth in full-year sales despite an expected sales drop in Q1.

Major customer Apple is facing weaker demand for iPhones, driven mainly by a decline in China. February data from the China Academy of Information and Communications Technology showed shipments of non-Chinese brand smartphones, with Apple’s iPhone accounting for the vast majority, dropped 31.7% year-on-year to about 2.4 million units.