Apple’s key iPhone assembler, Foxconn, saw Friday’s profit drop nearly 90 percent in the first quarter as the effects of the global health crisis (via) weighed on customers’ production demand Reuters).
However, the Taiwanese electronics maker said the worst was over and the company would “stabilize in the second quarter.” It expects double-digit sales growth compared to the first quarter.
Foxconn reported net income of $ 2.1 billion ($ 70.25 million) for the January-March quarter, well below a refinitive consensus estimate of $ 8.88 billion drawn by 14 analysts .
Foxconn cut its sales prospects for 2020 in March in March after strict quarantines were enforced in February at its plants in China at the height of the crisis, which has now largely resolved in the country.
Apple sold fewer than 500,000 iPhones amid ongoing travel and transportation restrictions – a 60 percent drop in iPhone sales compared to February 2019. In the same month, Apple announced that the March quarter financial forecast was not met can be. Foxconn’s largest monthly sales decline in about seven years was due to containment measures.
The manufacturer had previously claimed that the virus outbreak had a “relatively minor impact” on “iPhone” production, suggesting that its factories in other countries such as Vietnam, India and Mexico could close the gap.
It and other factories in China have reportedly taken stringent measures to prevent another virus outbreak in the country, while the Chinese government requires employers to check temperatures and provide face masks to employees, and to provide daily reports on the health of workers.
Foxconn has since resumed normal operations in all major factories in China.