iPhone manufacture Foxconn announces drop in revenue for Dec 2022
Taiwanese multinational electronics manufacturing company Foxconn said on Thursday that the output of iPhones at its plant in China has returned to normal levels. Foxconn which operates 12 factories in nine major Chinese cities is the largest iPhone manufacturer in the world.
The company also announced that revenue for December 2022 was posted nearly 12.3 percent lesser than what was earned in December 2021. Due to Christmas and Lunar New year holidays, the company faced disruptions in the manufacturing of phones at its factories in China.
Restrictions introduced by the company to curb COVID-19 infection in the factory premises also forced thousands of workers to leave the Foxconn factory in the Chinese city of Zhengzhou. Nearly 200000 workers are employed at the Zhengzhou Technology Park which is often called “iPhone City” due to its significance in the manufacturing of iPhones.
According to the company, despite a slump when compared to the previous year, revenue numbers for December 2022 were better than what was expected. The gradual recovery of operations at its Zhengzhou plant also helped the company achieve double-digit growth in the smart consumer electronics business when compared to November 2022.
The company also said in the statement released on Thursday that it expects first-quarter revenue to be roughly in line with market estimates.
People who are aware of the latest developments within the company told the Reuters news agency that growth in the smart consumer electronics business indicates that Apple has not cut orders for manufacturing iPhones and other products. Apple is one of the largest clients of Foxconn.
According to analysts, Foxconn manufactures nearly 70 percent of iPhones available in the world. The plant at Zhengzhou produces the majority of high-end new versions of the iPhone such as the iPhone 14 Pro.
The company posted a yearly revenue growth of 10.47 percent in 2022 as major product lines from smartphones to servers witnessed growth.
In the fourth quarter, the Zhengzhou plant grappled with strict COVID-19 restrictions, now being eased, that fuelled discontent among workers over conditions at the factory. It was also hit by worker unrest over pay. In order to make sure that workers continue to stay in the company, the company has reportedly offered bonuses. This is also said to be a business move to attract new workers to the plants.
A few weeks ago, a source from the company reportedly told Reuters News Agency that they expect the Zhengzhou plant to be fully operational by late December or early January 2023.
