iPhone maker Foxconn sees lowest quarterly profit in two decades

Tim Cook at Foxconn
Tim Cook at Foxconn (Image credit: Apple)

What you need to know

  • Apple's iPhone maker Foxconn has published its Q1 profits.
  • They slumped by a record 90% to a low not seen since 2000.
  • Foxconn said that it is seeing growth momentum in Q2, and that the worst is over.

Apple's iPhone maker Foxconn has published its Q1 profit, showing a massive slump of 90%.

As reported by Reuters:

Foxconn's first-quarter profit plunged to its lowest in two decades, all but wiped out, after the coronavirus pandemic forced the Taiwanese firm to suspend manufacturing operations in China and knocked demand from customers including Apple Inc.

"The report does, however, note that Foxconn says the worst of the coronavirus pandemic is over for the company, and that "new growth was to be found in work-from-home lifestyles." In a statement the company said:

"Hon Hai will stabilize in the second quarter"

The 90% slump in profit is the lowest quarterly profit for the company since 2000, revenue declining by 12%.

According to Reuters, the company expects to see "double-digit percentage growth" in Q2 compared to Q1, but still a decline year on year. Whilst enterprise computing is expected to be a source of growth for the country, Foxconn is expecting a 15% decline in smartphone sales. Smartphones accounted for 42% of Foxconn's revenue in Q1.

Foxconn's Chairman Liu Young-way said, " for consumer electronic products, because everyone is staying at home, naturally, it affects consumers' purchasing power and such power might take a very long time to recover."

A recent DigiTimes report suggests that recovery is on the way, as Apple's new iPhone SE helped propel the company to a new April record of $12.72 billion in revenue, an increase of nearly 10% on the month before.

Stephen Warwick
News Editor

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design. Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9