Foxconn hits low this Q1, due to Coronavirus Outbreak

As the COVID-19 pandemic continues, essential goods are increasing in demand while non-essential goods, such as smartphones, continue to decline to demand. 

Foxconn, the largest electronics contract manufacturer, sees a declining net profit from January until March as it declined to T$2.1 billion, a 90% decrease in contrast to the previous year, and is currently the lowest since the Q2000, which it reported an estimate of T$8.88 billion.

However, despite the losses, the company is hopeful as its factories have been reopened in China and it predicts that their net profits will stabilize by Q2. 

Foxconn chairman Liu Young-way said that its enterprising and computing division will see an expected revenue growth of 10% yearly and more than 15% in the current quarter. 

Its consumer electronics division, which comprises mostly of smartphones, however, will continue to see a yearly decline of 15% in sales as the COVID-19 pandemic decreases the demand for smartphones and electronics

Sources from: Reuters.com, GSMArena.com

Foxconn factory in China