Foxconn fears Q4 flop due to COVID complications • The Register

Electronics giant Hon Hai Precision Industry Co., Ltd — better known as Foxconn — has reported strong growth across numerous product categories but warned its Chinese operations could drag the company down in the fourth quarter.

The company’s monthly sales report [PDF] There was a lot of good news for October 2022: Revenue of NT$776,577 million (US$24.3 billion) was up 41 percent year-on-year. Compute, networking and cloud products all saw “significant month-on-month growth” in the double digits.

The company’s smart consumer electronics lineup did as well, with an unspecified launch being thanked for the leap. The iPhone 14 is a clear contender as the source of the good news, as are recent CPU launches from AMD and Intel, which could give a bit of a boost to PC sales.

Given the barrage of downside forecasts from PC and smartphone vendors, the news that one of their suppliers has seen some sunny days is encouraging.

But of course every silver lining has a cloud around it. Other products didn’t fare as well, posting a “slight decline” due to strong sales the previous month.

And the company also dropped the following bad news:

Zhengzhou is home to a colossal Foxconn plant focused on making iPhones for Apple… and Apple yesterday warned production will miss targets due to strict lockdowns to contain a COVID-19 outbreak.

“Foxconn is working with that now [Henan provincial] Government in a concerted effort to eradicate the pandemic and resume production at full capacity as soon as possible,” the revenue statement said.

Foxconn and Apple are both hoping that effort will be successful, as both have revealed that the shutdowns in Zhengzhou could affect their balance sheets — hard. ®

https://www.theregister.com/2022/11/08/hon_hai_october_revenue/ Foxconn fears Q4 flop due to COVID complications • The Register

Rick Schindler

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