Apple supplier Foxconn’s Q1 profit slumps 56%, lags forecasts

TAIPEI  -Apple Inc supplier Foxconn reported on Thursday a 56-percent fall in first-quarter net profit, lagging forecasts in its biggest quarterly fall in three years, as global economic woes hurt demand for smart consumer electronics.

The Taiwanese company, which is the world’s largest contract electronics maker, said net profit for the January-March quarter fell to T$12.8 billion ($417.17 million) from T$29.45 billion in the same period the previous year.

It was much worse than an average forecast of T$29.18 billion profit from 13 analysts, according to Refinitiv.

Foxconn said it expected revenue for its key consumer electronics products to decline year on year in the second quarter. That group includes smartphones and makes up more than half of Foxconn’s total revenue.

It expects revenues for cloud and networking products in 2023 to be flat, compared to a previous forecast of significant growth for those sectors.

Overall, revenues for the second quarter would fall, while full-year revenues would be flat, the Taiwanese company said. Foxconn earlier this year forecast revenue to be flat for 2023.

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