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Apple's main iPhone assembler Foxconn posted an almost 90 percent drop in first-quarter profit on Friday, as the impact of the global health crisis hit production demand from clients (via Reuters).

chinafoxconn.jpg

But the Taiwanese electronics manufacturer said the worst was over, and the company would "stabilize in the second quarter," adding that it expects revenue to show double-digit growth in comparison to the first quarter.

Foxconn reported net profit of T$2.1 billion ($70.25 million) for the January-March quarter, falling well short of a Refinitiv consensus estimate of T$8.88 billion drawn from 14 analysts.
Foxconn slashed its 2020 revenue outlook in March after strict quarantines were enforced at its China plants for a period in February, at the height of the crisis, which has now largely resolved in the country.

Apple sold fewer than 500,000 iPhones amid the ongoing curbs on travel and transport - a 60 percent slump in ?iPhone? sales compared to the February 2019 quarter. The same month, Apple announced that its financial guidance for the March quarter would fall short. Foxconn went on to suffer its biggest monthly drop in revenue in about seven years because of the containment measures.

The manufacturer had earlier claimed the viral outbreak had had a "fairly small impact" on ??iPhone?? production, suggesting its factories in other countries like Vietnam, India, and Mexico had been able to fill the gap.

It and other factories in China have reportedly implemented stringent measures to prevent the another viral outbreak in the country, while the Chinese government is mandating that employers check temperatures and provide face masks to employees, as well as submitting daily reports on workers' health statuses.

Foxconn has since resumed normal operations at all of its main factories in China.

Article Link: iPhone Assembler Foxconn Posts Near 90% Drop in First Quarter Profit
 

otternonsense

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Jul 25, 2016
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Foxconn produces way more devices than just Apple's though. Their revenue outlook cannot just apply to Apple alone (I presume), and I wonder what the impact was on the entire Apple product family, from the iPhone to the iPad to the Mac. I recall reading, for instance, that iPad and Mac sales actually increased due to switching to work from home.
 

dazzer21-2

macrumors 6502
Dec 3, 2005
338
451
It will be interesting to see if this crisis enables Apple to maintain their current profit margins or whether something has to give. 16" MacBook Pro for the price of a MacBook Air in 6 months' time? 😂
 
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adamw

macrumors 6502
Sep 22, 2006
456
717
Looks like we may get a discount on prices from Apple due to lack of demand and the uncertain economy. That would be great! Foxconn losing up to 90% of profit seems to indicate that China's Supply Chains are hurting.
 

citysnaps

macrumors G3
Oct 10, 2011
8,326
14,501
San Francisco
It will be interesting to see if this crisis enables Apple to maintain their current profit margins or whether something has to give. 16" MacBook Pro for the price of a MacBook Air in 6 months' time? 😂

That would be close to erasing most of Apple's GPM. And thus little incentive to produce.
 

gnasher729

Suspended
Nov 25, 2005
17,980
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"Sold fewer than 500,000 iPhones" should be "sold fewer than 500,000 iPhones in March in China".
[automerge]1589550794[/automerge]
Now if we stop buying after the crisis, they might drop the prices.
If you don't buy, it won't affect you. On the other hand, unless you are unemployed, maybe your company will want to lower wages.
 
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mi7chy

macrumors G3
Oct 24, 2014
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Strange considering a ton of iPhone SE2 are being sold with the $200 offers.
 

justperry

macrumors G5
Aug 10, 2007
12,185
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I'm a rolling stone.
A 90% drop in profits still leaves 10% of the profits, after paying all of the expenses. $70.25 million profit is MUCH better than any size of loss, and this is just one quarter.

Maybe the headline should be "Even in a pandemic, Foxcom is still making money!"

Exactly, they don't shed millions or even billions, this whole retarded financial speak should be banned.
A loss should be called a loss only when they are in the red, not if the profit goes from 100 million to 99 million.
 
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rgbrock1

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Feb 1, 2016
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In the above article, Macrumors uses the the two countries of "Taiwan" and "China" seemingly interchangeably. They are not. Far from it. So, are we talking about FOXCONN's factories in Taiwan or talking about other factors in China?
 
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calzon65

macrumors 6502a
Jul 16, 2008
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Exactly, they don't shed millions or even billions, this whole retarded financial speak should be banned.
A loss should be called a loss only when they are in the red, not if the profit goes from 100 million to 99 million.

Well said ... and why I still can't shed a tear for poor Foxconn ... boo hoo they are only going to make a few hundred million dollars.
 
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dan110

macrumors 6502a
Jul 13, 2013
600
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'Merica
Trade war, anti-American products/services sentiment, and 'Rona Virus damage to the economy. Apple will have to adjust their business model or watch as growth stalls.
 
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