iPhone maker Foxconn’s growth is bottoming out due to lower demand for consumer electronics.
Last quarter, the Taiwanese firm, which is officially called Hon Hai Precision Industry, only managed to increase its results by 3.9 percent compared to the same period of the previous year. In the past, Foxconn grew much more significantly.
At $48 billion (after conversion), quarterly revenue was even significantly lower than the previous three months, when production was disrupted for weeks at the company’s massive iPhone assembly complex. in the Chinese city of Zhengzhou due to the corona pandemic. This complex, also called iPhone City, because it is the main manufacturing site in the world of Apple’s smartphone, could not resume normal production until January.
Fear of a recession
According to Foxconn, things will probably not stop there. For the current quarter, the company is even considering a further drop in turnover. This could further fuel fears of an economic recession among investors. The demand for iPhones and other electronic products is indeed considered an important indicator of consumer behavior.
But for analysts, it is difficult to give a correct explanation of the figures. This is due to the fact that during the months of January, February and March, fewer Apple products are generally sold, which means that the turnover inevitably declines somewhat.
