Apple supplier Foxconn says output recovering despite revenue fall; Apple did not cut orders

Foxconn, Apple’s leading assembler, said on Thursday that production at its “iPhone City” factory in China was “basically back to normal,” with December revenue down 12.3% year-on-year, signaling the beginning of a recovery. rice field.

The headquarters in Taipei displays the logo of electronics contract manufacturer Foxconn Technology Group, formerly known as Hon Hai Precision Industry. Photo: Agence France-Presse

Production of the Apple iPhone has been delayed for Christmas and January’s Lunar New Year, after thousands of workers left Foxconn’s factory line in Zhengzhou as they protested the Chinese Communist Party’s wacky “Zero COVID” lockdowns and restrictions. Faced with turmoil before the holidays.

Sarah Wu and Yimou Li of Reuters:

Despite a year-on-year decline, December revenue beat expectations, with a “moderate recovery” at the Zhengzhou factory contributing to “double-digit growth” in smart appliance business revenue compared to November, the company said. rice field. .

Foxconn sources familiar with the matter couldn’t be named because they weren’t authorized to speak to the press, but December’s growth in the consumer electronics business, which includes smartphones, compared to the previous month was a major client, Apple. did not reduce. order.

Foxconn assembles about 70% of iPhones, with the Zhengzhou factory producing most of the premium models, including the iPhone 14 Pro, according to analysts.

The company said in a statement Thursday that it expects first-quarter earnings to be “largely in line with market consensus,” but did not provide further details.

Analysts expect first-quarter revenue to grow 5.6% year-over-year, according to Refinitiv.

MacDailyNews takes: Apple did not cut orders.

As I wrote earlier today:

Apple is constantly adjusting production to meet expected demand in the first quarter following the holiday sales period.

Don’t be fooled by normal operations twisted into “fake news” FUD planted before revenue by colluding and/or facilitating short-circuiting to gullible media outlets.

Instead, use these cases of blatantly obvious FUD as good entry points for long-term profit.

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