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Foxconn's nightmare quarter, profits down 90%

FOXCONN

Apple's leading iPhone builder, Foxconn, experienced an almost 90 percent drop in first quarter earnings as a result of the global health crisis, which affected virtually every sector of the economy. The worst, he says, for the producer, the past and the company will "stabilize in the second quarter".

Furthermore, Foxconn expects revenue to show double-digit growth compared to the first quarter. The company posted a net profit of $ 2.1 billion for the January-March quarter, well below the Refinitiv estimate of 8.88 billion, derived from 14 analysts.

Foxconn reduced its revenue prospects for 2020 last March, after severe quarantines were applied in Chinese factories during the month of February, in the midst of the crisis, now almost resolved in the country with the return to work of almost all the workers.

Apple sold fewer than 500,000 iPhones in the reporting period, with a 60% drop in sales of its smartphone, compared to the quarter of February 2019. Foxconn continued to experience the largest decline in revenue on a monthly basis in the past seven years, and there only because of the containment measures.

Foxconn quarantines iPhone workers and reduces predictions

The manufacturer previously said that the outbreak had had a "rather limited impact" on the production of "iPhones", suggesting that its factories in other countries such as Vietnam, India and Mexico had been able to bridge the gap. Certainly true, but evidently the customer demand tending towards a clear fall has generated these important losses, with the profits decreasing by 90%.

To date, however, Foxconn has resumed normal operations in all its main factories in China, also thanks to the health situation deemed now stable in the country.

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