Apple’s largest outsourcing manufacturer, Foxconn, stated that in the fourth quarter of 2023, all business revenues, including the iPhone, decreased by 5.4% year-on-year. It believes that the slowing demand will also affect the first quarter of 2024. As early as August 2023, Foxconn reported a continued year-on-year decline in profits following a 56% decline in the first quarter of 2023 but expects the launch of the iPhone 15 to boost its profits.
However, according to Foxconn’s latest published overall data for the fourth quarter of 2023, its actual sales have seen a continuous decline for the fourth consecutive year.
According to Reuters, Foxconn’s latest financial report shows that performance in the fourth quarter of 2023 was generously termed “steady” by the company. Overall revenue, including smartphones, decreased by 5.4% year-on-year, amounting to $59.54 billion, although this figure is described as better than expected. Most importantly, the revenue for December 2023, the peak month, dropped by 26.9% year-on-year, reaching $14.84 billion.
The company’s representatives also stated that they now expect a decrease in demand for their business (including the iPhone) in the first quarter of 2024, but the company did not provide specific data guidance. First-quarter sales have historically been lower than the fourth quarter as Apple launches new iPhone models before the holiday buying season in September.
Moreover, due to declining iPhone demand, market analysts have been downgrading Apple’s ratings. Analyst Harsh Kumar believes that economic concerns, coupled with rising prices of memory and flash chips, imply that Apple will face difficulties in the first half of 2024.
Barclays Investment Bank is also pessimistic about the second half of 2024, stating without clear evidence that they believe the iPhone 16 series will not offer any notable new features.
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