Foxconn’s July sales drop by 1.23% YoY, but Q3 outlook improves.

Foxconn's July sales drop by 1.23% YoY, but Q3 outlook improves.

Foxconn Expects Rebound in Third Quarter with Double-Digit Growth in Smart Consumer Electronics

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Taiwan’s Foxconn, the world’s largest contract electronics maker and a major supplier for Apple, recently announced a 1.23% year-on-year decline in revenue for the month of July. However, the company remains optimistic about a business rebound in the third quarter. With customers showing increasing interest in its smart consumer electronics products, including smartphones, Foxconn’s revenue for the month reached T$469.23 billion ($14.82 billion), marking a nearly 11% increase from June.

This July’s revenue is the second-highest ever reported for the month, and the company attributes it to customers’ growing pull-in for its smart consumer electronics. Notably, the smartphone segment experienced double-digit growth from a year ago, as major vendors like Apple prepare for new product launches later this year.

While the smartphone segment performed well, other areas of Foxconn’s business, such as computing products like PCs and cloud and networking products, experienced declines compared to last year. The company did not provide specific details about these declines.

Foxconn is optimistic about the third quarter, expecting it to be better than the second quarter. The company anticipates an on-quarter growth rate higher than that observed in the previous two years. This optimism is in line with traditional trends in the tech industry, where the first half of the year is typically slower as major electronics vendors, including Apple, launch new products closer to the year-end holiday season.

The second quarter of this year saw a 13.8% year-on-year drop in revenue, but this was in line with Foxconn’s expectations, as the company gears up for third-quarter earnings reports on August 14.

Overall, while Foxconn faced a minor decline in revenue for July, it expects a strong rebound in the third quarter with a focus on its smart consumer electronics products. With major vendors like Apple driving demand, coupled with the ongoing peak season, Foxconn’s operations are set to ramp up gradually. This positive outlook in the midst of a challenging year shows the resilience and adaptability of the world’s largest contract electronics manufacturer.