Taiwan-based Foxconn, a major contract assembler for Apple, on Tuesday warned about the impact of “materials shortages” amid tight global chip supplies. Likely as a result, Apple stock fell on Tuesday.
Foxconn Chairman Liu Young-way forecast first-quarter revenue to be “better than normal” for the season due to strong sales of smartphones and telecommuting devices amid the coronavirus-spurred work-from-home trend.
However, Foxconn is closely monitoring “materials shortages” in the consumer electronics supply chain, Liu said. “The pandemic and the materials shortage could impact our performance going forward,” he said. “That’s why we are being cautious.”
Foxconn said the shortages should hit less than 10% of customer orders. The company described the impact of the shortages as limited.
In morning trading on the stock market today, Apple stock sank 1.3%, near 119.85… Since hitting a record high of 145.09 on Jan. 29, Apple stock has fallen about 18%.
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