Apple Supplier Foxconn’s Sales Decline Despite China Reopening

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(Bloomberg) -- Hon Hai Precision Industry Co.’s February sales fell 11.7% from a year earlier, despite a boost for the iPhone assembler from China’s reopening.

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The Apple Inc. supplier, also known as Foxconn, said monthly revenue dropped to NT$402 billion ($13 billion) last month. Still, first-quarter outlook is “roughly in line with market expectation,” based on sales figures in the last two months, Hon Hai said in a statement Sunday.

Lunar new year holidays in China occurred in January this year while in 2022 they took place in February.

Output at the Taiwanese company’s vast iPhone assembly complex in the Chinese city of Zhengzhou largely resumed normal operations in January, following disruptions from a Covid outbreak. Attention is on how the popularity of iPhones holds up, with overall smartphone demand faltering worldwide.

Hon Hai plans to invest about $700 million on a new plant in India to ramp up production there, as more manufacturers shift away from China to reduce the potential fallout from growing Washington-Beijing tensions.

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