Iphone Factory ChinaSource: Apple

What you need to know

  • Foxconn has posted its June revenues.
  • It shows a 6.83% decrease sequentially, and more than 9% year-on-year.
  • It's likely COVID-19 disruption and the iPhone 12 delay may have been factors.

Apple's main supply chain partner Foxconn has posted decreased June revenues of more than 9% year-on-year.

According to DigiTimes:

EMS provider Foxconn Electronics (Hon Hai Precision Industry) has reported consolidated revenues of NT$360.532 billion (US$12.25 billion) for June, decreasing 6.83% sequentially and 9.08% on year.

Of the four main product lines, networking/communication devices for cloud computing had the best results compared to electronic components, PC/peripherals, and consumer electronics, Foxconn said.

Foxconn posted consolidated revenues of NT$1.128 trillion for second-quarter 2020, growing 21.38% sequentially but slipping 2.77% on year. PCs and peripherals had the best second-quarter sales compared to the other product lines, Foxconn noted.

Foxconn's consolidated revenues of NT$2.058 trillion for January-June declined 7.16% on year.

Earlier this year, Foxconn's profits for Q1 of 2020 slumped by a record 90% to their lowest in two decades. All but wiped out, profits suffered thanks to the COVID-19 pandemic, which in the early part of the year forced Foxconn to shut down its manufacturing operations in China, causing shortages of Apple products worldwide. Revenue in that report was down by 12%, so June's figures may well suggest that whilst they are still lower than expected, things are starting to turn around.

Foxconn recorded a bumper April mainly thanks to Apple's new iPhone SE, however widespread reports of the iPhone 12's delay may impact on revenue and profits in the near future. Foxconn has previously said it expects a 15% decline in smartphone sales this year. Smartphones accounted for 42% of Foxconn's revenue in Q1.