Taiwan’s Foxconn, which assembles iPhones for Apple, reported a better-than-expected third-quarter revenue on Friday, helped by robust smartphone demand as individuals proceed to work remotely via the coronavirus pandemic.
However Foxconn, the world’s largest contract electronics maker, mentioned it expects fourth-quarter income in its key client electronics enterprise, which incorporates smartphones, to stoop greater than 15 % from a yr earlier, with out providing a purpose. It forecast general income to fall between 3 % and 15 %.
Foxconn beforehand mentioned it felt solely a small affect from the year-long international chip scarcity however had cautioned that rising COVID-19 instances in Asia might damage its provide chain.
Third-quarter income rose 9 % on the yr, Foxconn mentioned, reporting July-September web revenue climbed 20 % from a yr in the past to TWD 36.98 billion (roughly Rs. 10,668 crore). That was above a Refinitiv consensus estimate of TWD 31.73 billion (roughly Rs. 8,492 crore).
Analysts had mentioned they anticipated strong iPhone gross sales boosted Foxconn’s enterprise within the third quarter, and the corporate secured greater than 75 % of meeting orders, together with these for the most recent iPhone 13. However they cautioned that offer chain issues might mute any additional near-term enhance in orders at Foxconn.
Apple mentioned final month that offer chain woes price the corporate $6 billion (roughly Rs. 44,673 crore) in gross sales through the July-September quarter, and that the affect would worsen through the year-end vacation interval.
“Within the quick time period, Hon Hai’s iPhone 13 shipments will proceed to be affected by the chipset scarcity, one thing that Tim Cook dinner additionally confirmed” on an Apple earnings name, Fubon Analysis wrote in a observe dated November 8.
© Thomson Reuters 2021