AAPL - Foxconn Q2 revenue dips ~14% but sees brighter Q3 on the back of peak season

2023-07-05 07:01:26 ET

Foxconn ( OTCPK:FXCOF ), an Apple ( AAPL ) manufacturing partner, said Q2 revenue fell -13.75% Y/Y to NT$1.302T.

Q2 : Foxconn —  which is formally known as Hon Hai Precision ( OTCPK:HNHAF ) ( OTCPK:HNHPF ) — added that Smart Consumer Electronics Products segment declined due to higher base in the year ago period.

Cloud and Networking Products revenue also saw a slight decline Y/Y.

The company added that due to slight growth in major components, revenue from the Components and Other Products segment grew Q/Q but slightly declined Y/Y.

In Computing Products segment, due to new product launch in June, revenue showed positive growth Q/Q, but due to a slowdown in PC market demand compared to last year, there was a slight decline Y/Y, according to Foxconn.

June :

For June, sales fell -19.65% Y/Y (-6.20% M/M) to NT$ 422.8B, however it was still the second highest figure on record for the same period. June 2022 had ranked the highest with revenue of NT$526.2B.

The company said revenue from Components and

Other Products, and Computing Products and Computing Products saw a slight decline Y/Y. Smart Consumer Electronics Products and Cloud and Networking Products, both, declined Y/Y.

Outlook Q3 :

Foxconn said that with H2 peak season currently underway, operations will gradually ramp up. The outlook for Q3, which will be better than Q2, is expected to increase at an on-quarter pace higher than seen in the previous two years.

However, when compared to the pre-pandemic period, the growth rate is expected to be approximately on par, the company added.

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