Foxconn's fourth-quarter profit falls 10%, expects lower demand for consumer electronics

March 16, 2023 0:06 am

Foxconn announced its financial report for the period from October to December on Wednesday, showing a 10% year-on-year profit drop in 2022, and expects demand for consumer electronics to decline for the full year ahead.

The company reported a revenue of NT$1.96 trillion ($63.83 billion) and net income of NT$40 billion ($1.3 billion) in the final quarter of 2022. That was down 10% for the same period in 2021 and operating profit also slumped 16%. 

During the period, revenue for its key consumer electronics products division was flat compared to a year ago, the company said.

"We maintain a relatively conservative view towards the smart consumer electronics and think they might decline slightly," Foxconn Chairman Liu Young-way said on an earnings call, pointing to factors including last year's high base as well as inflation and the slowing global economy.

The Apple supplier said it will continue to expand its operations beyond mainland China, and said that the exploration of new markets was a key priority for the company in 2023. 

About 70% of the company's revenue currently comes from products made in China, but "going forward the proportion of overseas regions will continue to increase."

Earlier this year, Foxconn pledged to significantly expand its operations in India. Other Apple suppliers, including Pegatron and Wistron, have also been diversifying their production lines and reducing their reliance on made-in-China.