The company that reportedly makes over two thirds of Apple’s phones saw a big drop in orders but still maintains its outlook for the year.
| (millions) | MoM | 2022 | |
| January | $21,614 | 4.93% | $14,590 |
| February | $13,159 | -39.12% | $14,893 |
| YTD | $34,773 | $29,483 |
Foxconn, Hon Hai Precision Manufacturing Company Limited to its friends, reported on February revenues, and it’s a mixed bag. It’s YoT performance for the first two months of the year are 17.94% higher than the same period in 2022, reflecting some return to normalcy for the company after China’s removal of zero-COVID-19 strictures. However, the company did acknowledge receding business in computing and smartphone segments, even as its Apple business stabilized with operations at its Zhengzhou campus returning to normal.
Most of the good news is with the return to normalcy, of sorts, after very strict pandemic lockdowns that disrupted supply chains around the world. However, it’s a new normal with a great deal of softness in demand for computing products and phones. Although production lines are starting to return to some sort of normalcy, it looks like pent-up demand drove early sales while, in reality, there is a pullback on actual business that could be more ominous if it keeps up at this pace.
