Foxconn’s July sales drop 1.23% year over year, forecasts third-quarter rebound

Foxconn, the world’s largest contract electronics manufacturer and a significant supplier for Apple, announced on Saturday a 1.23% year-on-year decline in revenue for July. However, the company is anticipating a rebound in business during the third quarter.

Formally known as Hon Hai Precision Industry Co Ltd, Foxconn (2317.TW) reported revenue of T$469.23 billion ($14.82 billion) for the previous month, indicating an almost 11% increase from June. The company attributed its second-highest July revenue to heightened demand for its smart consumer electronics products, particularly smartphones. This segment experienced double-digit growth compared to the previous year, driven by major clients such as Apple preparing for upcoming product launches later in the year.

On the other hand, other business areas like computing products, including PCs, as well as cloud and networking products, showed a decline in comparison to the previous year. However, Foxconn did not provide specific details regarding these declines. In a statement, the company expressed its expectation for a gradual increase in operations with the ongoing peak season of the second half of the year. It anticipates that the third quarter’s outlook will surpass the second quarter’s performance, exhibiting a quarter-on-quarter growth rate that outpaces the previous two years.

The initial half of the year typically witnesses slower activity for Taiwan’s technology manufacturers, as major electronics vendors such as Apple tend to launch new products closer to the end-of-year holiday season. Foxconn noted that its second-quarter revenue had declined by 13.8% compared to the previous year, aligning with the company’s projections disclosed in July. The company is set to release its third-quarter earnings report on August 14th.

(Note: The currency conversion is $1 = 31.6520 Taiwan dollars)

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