Foxconn Expects Rebound: Q2 Revenue Decline, Q3 Strong Growth

Foxconn, the world's largest electronic product contract manufacturer, has reported a 13.8% year-on-year decline in revenue for the second quarter. However, the company is optimistic about a strong rebound in the third quarter, thanks to the upcoming year-end shopping season. In the second quarter ending in June, Foxconn's revenue reached NT$1.3 trillion (approximately $41.76 billion), meeting expectations but experiencing a 13.8% decrease compared to the previous year. 

The decline in revenue for the second quarter is mainly attributed to a significant drop in sales of Foxconn's smart consumer electronics products, particularly in the smartphone business, which is a core part of their operations.

Looking ahead, Foxconn is confident in its performance for the second half of the year. The company expects a gradual recovery in business as the year-end shopping season approaches. They anticipate the third quarter to outperform the second quarter, with revenue growth surpassing levels seen in the previous two years, eventually reaching pre-pandemic levels.

It is common for consumer electronics manufacturers like Foxconn to experience lower performance in the first half of the year. However, the second half brings opportunities as companies like Apple release new products to cater to the high-demand holiday shopping season.

In the first quarter, Foxconn achieved a 4% year-on-year revenue growth, amounting to NT$1.46 trillion, while experiencing a 56% decline in net profit, which stood at NT$12.825 billion.

Foxconn, responsible for assembling around 70% of iPhones, heavily relies on its smartphone business, which accounts for over half of its total revenue. Additionally, Foxconn is actively expanding into emerging markets such as smart cars. The company believes that a substantial portion of the electric vehicle (EV) industry will shift towards professional contract manufacturing. Traditional car manufacturers are also expected to embrace this new business model, presenting Foxconn with promising opportunities for growth.