Taiwanese electronics manufacturer Foxconn reported a 23.7% fall in profit in the last three months of 2019 on Monday as the company prepares to face the full impact from the coronavirus pandemic that has pushed down demand from key customers such as Apple.
Foxconn, which assembles iPhones at factories in China, reported net profit of T$47.76 billion ($1.6 billion), according to Reuters calculations, slightly above an average forecast of T$46.94 billion from 14 analysts compiled by Refinitiv.
The world’s largest contract electronics manufacturer did not given any explanation for the decline from T$62.61 billion in the same period a year earlier… Apple, its biggest client, rescinded its outlook for the first quarter of 2020 saying manufacturing in China had taken longer than expected to resume amid travel restrictions and an extended Lunar New Year break.
Foxconn warned this month that revenue would fall more than 15% in businesses including consumer electronics in the first quarter. But it said revenue would recover thereafter as production returns to normal in virus-hit China.
MacDailyNews Take: No explanation required as everyone on earth knows why Apple’s main supplier’s profit fell in Q419.