Apple supplier Foxconn's profit plunge 56%, biggest quarterly fall in 3 years

Apple Inc's supplier Foxconn reported a 56% plunge in its first-quarter net profit. This is the biggest drop in quarterly profit in the last three years. Net profit for January-March quarter fell to T$12.8 billion from T$29.45 billion in the same period the previous year.

As per Refinitiv, 13 analysts had predicted an average forecast of T$29.18 billion in profit. Now, Foxconn lags forecast and has recorded a much worse profit. Foxconn Chairman Liu Young-way, has said that the slump in profit was due to an unspecified asset write-off from non operational business while speaking on an earnings call.

Foxconn expects the revenue for key electronic products that includes smart phones to fall year-on-year in the second quarter. This makes up more than half of Foxconn's total revenue. Similarly the supplier is expecting a flat revenue growth in its cloud and networking products in 2023. The company further said that while the second quarter profit would fall, while the revenue for the entire year would be flat.

As per Reuters, Apple last week reported a 2.5% fall in sales for its fiscal second quarter ended April, ahead of expectations, thanks to better-than-expected iPhone sales and notable inroads in India and other newer markets.