Foxconn Remains Confident in Strong Year-End Sales Outlook

Taiwan’s Foxconn, renowned as the world’s largest contract electronics manufacturer and a significant supplier for tech giant Apple, reaffirmed its optimistic year-end holiday sales outlook and indicated robust consumer demand in both China and the United States.

For Taiwan’s tech companies, the fourth quarter traditionally signifies a high-demand period, as they rush to fulfill orders for smartphones, tablets, and various electronic devices destined for Western markets during the year-end holiday season, including key customer Apple.

In a statement, Foxconn declared that the second half of the year typically marks a “traditional peak season” for consumer tech products, and as such, they anticipate operations to escalate sequentially, aligning with their previously stated outlook from the previous month.

The statement further emphasized that the “significant growth outlook in the fourth quarter compared to the third quarter remains unchanged,” without delving into specifics.

Foxconn, officially known as Hon Hai Precision Industry Co Ltd, reported that its revenue for the previous month reached T$741.2 billion ($23.09 billion), marking the second-highest October revenue on record. It was a 4.56% decrease from the previous year, attributed to a high base, but a notable 12.2% increase from September.

In the realm of smart consumer electronics, encompassing smartphones, Foxconn experienced “significant” month-on-month growth, driven by new product launches and in anticipation of China’s Singles Day shopping extravaganza this month, as well as the Thanksgiving holidays in the United States.

It’s important to note that Foxconn holds a pivotal role as Apple’s primary iPhone assembler, solidifying its importance in the supply chain.

While Apple unveiled a new series of iPhones in September, its holiday quarter sales forecast, shared on Thursday, fell short of Wall Street expectations, primarily due to sluggish demand for iPads and wearables.

Foxconn is set to release its third-quarter earnings on November 14, which will provide a more comprehensive insight into its outlook and financial performance.

Ahead of the release of its October sales data, Foxconn’s shares listed on the Taipei Stock Exchange saw a 1.2% decline on Friday, in contrast to the broader market’s 0.7% gain. For the year, Foxconn shares have dipped by 4%, resulting in a market value of $41.5 billion.