What you need to know
- Apple's main iPhone supplier Foxconn says the global chip shortage could last until the second half of 2022.
- Robust iPhone sales likely boosted Foxconn's Q3 performance.
- The company has warned revenue will fall by 15% in Q4.
As reported by Reuters:
Apple supplier Foxconn (2317.TW) forecast on Friday that a global chip shortage would run into the second half of 2022 and its fourth-quarter revenue for electronics, including smartphones, would fall more than 15%.
Foxconn reported a better-than-expected Q3, with profits jumping 20% thanks in part to strong demand for the iPhone. However, the company has warned its Q4 revenue may fall by more than 15% because of constraints. Chairman Liu Young-Way said, "regarding next year's prospects, we will be relatively cautious in our outlook."
The report continues:
As well as forecasting the slide in revenue in its consumer electronics business, which includes smartphones, Foxconn said it expected overall fourth-quarter revenue to fall between 3% and 15% in the period. Analysts predicted an 11% drop, according to a Refinitiv consensus estimate.
Analysts cited by Reuters suggest "robust" iPhone sales drove Foxconn's third-quarter business, and that the company secured more than 75% of assembly orders from Apple in the quarter. Apple itself has noted how supply issues cost the company $6 billion in the last quarter, and that things were only going to get worse ahead of Black Friday and into the holiday season.
Apple's new iPhone and other devices are proving very popular, meaning an early Black Friday deal might well be the ticket to making sure you can get your hands on everything you're after to close out the year.
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