iPhone Assembler Foxconn Posts Near 90% Drop in First Quarter Profit

Apple's main iPhone assembler Foxconn posted an almost 90 percent drop in first-quarter profit on Friday, as the impact of the global health crisis hit production demand from clients (via Reuters).

chinafoxconn
But the Taiwanese electronics manufacturer said the worst was over, and the company would "stabilize in the second quarter," adding that it expects revenue to show double-digit growth in comparison to the first quarter.

Foxconn reported net profit of T$2.1 billion ($70.25 million) for the January-March quarter, falling well short of a Refinitiv consensus estimate of T$8.88 billion drawn from 14 analysts.

Foxconn slashed its 2020 revenue outlook in March after strict quarantines were enforced at its China plants for a period in February, at the height of the crisis, which has now largely resolved in the country.

Apple sold fewer than 500,000 iPhones amid the ongoing curbs on travel and transport – a 60 percent slump in ‌‌iPhone‌‌ sales compared to the February 2019 quarter. The same month, Apple announced that its financial guidance for the March quarter would fall short. Foxconn went on to suffer its biggest monthly drop in revenue in about seven years because of the containment measures.

The manufacturer had earlier claimed the viral outbreak had had a "fairly small impact" on ‌‌‌iPhone‌‌‌ production, suggesting its factories in other countries like Vietnam, India, and Mexico had been able to fill the gap.

It and other factories in China have reportedly implemented stringent measures to prevent the another viral outbreak in the country, while the Chinese government is mandating that employers check temperatures and provide face masks to employees, as well as submitting daily reports on workers' health statuses.

Foxconn has since resumed normal operations at all of its main factories in China.

Tags: China, Foxconn

Popular Stories

Generic iOS 19 Feature Mock Light

iOS 19 Rumored to Be Compatible With These iPhones

Sunday December 22, 2024 8:09 am PST by
iOS 19 will not drop support for any iPhone models, according to French website iPhoneSoft.fr. The report cites a source within Apple. The report said that iOS 19 will be compatible with any iPhone that is capable of running iOS 18, which would mean the following models: iPhone 16 iPhone 16 Plus iPhone 16 Pro iPhone 16 Pro Max iPhone 15 iPhone 15 Plus iPhone 15 Pro ...
m3 macbook air blue

Apple Accidentally Leaked the Next MacBook Air

Sunday December 22, 2024 8:33 am PST by
Apple earlier this month released macOS 15.2, and in doing so it accidentally confirmed new MacBook Air models coming next year. Apple accidentally released macOS 15.2 restore files for unreleased "‌MacBook Air‌ (13-inch, M4, 2025)" and "‌MacBook Air‌ (15-inch, M4, 2025)" models. While it no surprise that the 13-inch and 15-inch MacBook Air models were going to be updated with the M4 ...
AirTag and Lavender iPhone

AirTag 2 Launching Next Year With These New Features

Tuesday December 24, 2024 8:35 am PST by
Apple is expected to release an AirTag 2 next year, and a few new features and changes have already been rumored for the item tracker. Below, we recap what to expect from the AirTag 2: The new AirTag is expected to be equipped with Apple's second-generation Ultra Wideband chip for longer range. The chip debuted last year in the iPhone 15 and the Apple Watch Ultra 2, and Apple said it...
iPhone 17 Slim Feature Single Camera 2 Redux

Top 5 Apple Products to Look Forward to in 2025

Friday December 20, 2024 2:22 pm PST by
It's looking like 2025 is going to be an important year for Apple, with the company planning to revamp the iPhone, push further into smart home products, and improve Apple Intelligence. There are tons of new products rumored for 2025, including new iPhones, M4 Macs, a smart home command center, and much more. We've highlighted the top five Apple products that will have the biggest impact in...
iPhone 16 Apple Store

iPhone Sizes Change Next Year: What to Know

Monday December 23, 2024 7:40 am PST by
This year, Apple tweaked iPhone 16 Pro screen sizes to make them bigger than 2023's iPhone 15 Pro models, and next year we are also expecting a change in the size of the displays in the iPhone 17 lineup. Here's what we know. Standard iPhone 17 Apple could introduce a new display size for the standard iPhone 17 model in 2025. The iPhone 17 could measure in at 6.3 inches, up from 6.1 inches,...
apple wallet drivers license feature iPhone 15 pro

Apple Says iPhone Driver's Licenses Coming to These U.S. States Next

Tuesday December 24, 2024 10:49 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Below, we outline which U.S. states and territories offer the feature, and additional states that have committed to rolling it out in...
Generic iOS 18 Feature Real Mock

iOS 18.2.1 Update Coming Soon for iPhone

Saturday December 21, 2024 4:45 pm PST by
Apple appears to be internally testing iOS 18.2.1 for the iPhone, based on evidence of the software update in our website's analytic logs this week. The logs have accurately revealed many iOS versions before they were released. iOS 18.2.1 should be a minor update that fixes bugs and/or addresses security vulnerabilities, but it is unclear which specific issues might be resolved. The update...
New Things Your iPhone Can Do in iOS 18

22 New Things Your iPhone Can Do in iOS 18.2

Monday December 23, 2024 6:30 am PST by
Apple released iOS 18.2 in the second week of December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. Apple has added a handful of new non-AI related feature controls as...
iphone 16 pro design cameras

iPhone 18 Pro Rumored to Be More Like DSLR Camera With This Upgrade

Monday December 23, 2024 6:24 am PST by
While the iPhone 18 Pro and iPhone 18 Pro Max are still nearly two years away from launching, a new feature has already been rumored for the devices. In a blog post today, Apple supply chain analyst Ming-Chi Kuo reiterated that the main rear camera on both iPhone 18 Pro models will offer variable aperture, which would be a first for the iPhone. The main camera refers to the 48-megapixel...

Top Rated Comments

j-beda Avatar
60 months ago
A 90% drop in profits still leaves 10% of the profits, after paying all of the expenses. $70.25 million profit is MUCH better than any size of loss, and this is just one quarter.

Maybe the headline should be "Even in a pandemic, Foxcom is still making money!"
Score: 10 Votes (Like | Disagree)
otternonsense Avatar
60 months ago
Foxconn produces way more devices than just Apple's though. Their revenue outlook cannot just apply to Apple alone (I presume), and I wonder what the impact was on the entire Apple product family, from the iPhone to the iPad to the Mac. I recall reading, for instance, that iPad and Mac sales actually increased due to switching to work from home.
Score: 3 Votes (Like | Disagree)
meaning-matters Avatar
60 months ago

Sorry, but I just can't seem to shed a tear for Foxconn.
You don't realise this might be a sign of economic downfall that may also hit you?

A bit further from home: You can't shed a tear for these hard working people that might be laid off?
Score: 3 Votes (Like | Disagree)
NBAasDOGG Avatar
60 months ago

Nope, employers cannot work for free, just like you, they must be able to buy bread.
For Apple to drop prices...
More people buy and Foxconn can assemble more iToys.
Score: 3 Votes (Like | Disagree)
calzon65 Avatar
60 months ago
Sorry, but I just can't seem to shed a tear for Foxconn.
Score: 2 Votes (Like | Disagree)
ericwn Avatar
60 months ago
For Apple to drop prices...
More people buy and Foxconn can assemble more iToys.
Ah I see we are at the “itoy “ level on comment 4 already. Sweet.
Score: 2 Votes (Like | Disagree)