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Apple’s major supplier, Foxconn, has reported a 10% drop in profits for the latest quarter compared to the previous year, according to an earnings call led by the company’s chair, Liu Young-way from Reuters. The decline was attributed to inflation and a slowing global economy. While the company expects significant growth in most areas, it anticipates a slight decline in smart consumer electronics.
Foxconn has been investing heavily in expansion, particularly in China, Vietnam, and India. Despite its latest setback, the company predicts an increase in demand for overall computing, as well as for its cloud, networking, and component products.
This news comes after Foxconn suffered significant losses due to COVID-19 constraints during the production of the iPhone 14. The company expects to recover from this setback, as restrictions have now been lifted.
The decline in Foxconn’s profits is a reminder that even the biggest players in the industry are not immune to economic pressures. As the global economy faces ongoing challenges, companies like Foxconn must continue to adapt and innovate to stay competitive. However, the anticipated growth in computing demand suggests that there are still opportunities for growth and success in this ever-evolving industry.
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Foxconn’s latest earnings call provides a glimpse into the complex web of factors that shape the tech industry. Inflation, global economic trends, and even a pandemic can have far-reaching effects on companies that are critical to the success of major tech giants like Apple.
As Foxconn continues to navigate these challenges, the world will be watching to see how it adapts and evolves to remain a key player in this ever-changing landscape.