Apple’s main device assembler Foxconn is not going through its best moments. At the end of March, the company announced the figures for the last quarter of 2019, figures that showed how its revenues had decreased by almost 24% compared to the same quarter of the previous year.
The coronavirus and the paralysis of activity in all its facilities, has only contributed to the fact that the numbers have decreased. This time, we talk about the benefits. Foxconn has seen a 90% drop in revenue in the first quarter of 2020, Reuters reports.
Foxconn’s first-quarter earnings fell to its lowest level in two decades, nearly extinct, after the coronavirus pandemic forced the Taiwanese company to suspend manufacturing operations in China and reduce demand from customers like Apple Inc.
The 90% drop in profits represents the lowest quarterly profit for the company since 2000. According to Reuters, the worst for the company has already passed and in the next quarter, it will once again experience an increase in its profits, as the production of the factories has resumed. Now we just need to know if consumption will reactivate in the same way (something unlikely according to many analysts).
The company expects to see double-digit percentage growth in the second quarter compared to the first quarter. While business computing is expected to be a source of growth for the country, Foxconn expects a 15% decline in smartphone sales. Smartphones accounted for 42% of Foxconn’s revenue in the first quarter.
Foxconn President Liu Young-way says many users are still at home, a situation that affects consumers’ purchasing power and may take a long time to return to normal.