Apple's top device assembler, Foxconn, is not going through its prime. At the end of March, the company announced the figures for the last quarter of 2019, figures that showed how their income had been reduced by almost 24% compared to the same quarter of the previous year.
The coronavirus and the stoppage of activity in all its facilities, has only contributed to the reduction of the figures. This time, we talk about the benefits. According to Reuters, Foxconn has experienced a decrease in your income of 90% in the first quarter of 2020.
In Reuters we can read:
Foxconn's first-quarter profits fell to their lowest level in two decades, almost extinct, after the coronavirus pandemic forced the Taiwanese company to suspend manufacturing operations in China and reduced demand from customers such as Apple Inc .
The 90% drop in profits means the lowest quarterly profit of the company since 2000. According to Reuters, the worst for the company is over and in the next quarter it will see an increase in its profits again, as factory production has resumed. Now we only need to know if consumption will be reactivated in the same way (something unlikely according to many analysts).
The company expects to see double-digit percentage growth in the second quarter compared to the first. While business computing is expected to be a source of growth for the country, Foxconn expects a 15% decline in smartphone sales. Smartphones accounted for 42% of Foxconn's revenue in the first quarter.
Foxconn president Liu Young-way says that many users are still staying at home, a situation that affects the purchasing power of consumers and that it can take a long time to get back to normal.