Foxconn's January revenue jumps 48.2 percent

Foxconn's January revenue jumps 48.2 percent

As it shrugs off Covid disruptions in China.

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Taiwan's Foxconn, the world's largest contract electronics maker and major iPhone assembler for Apple, said its revenue in January jumped 48.2 percent year-on-year, as it shook off Covid disruptions in China.

Revenue in January reached a record high, at T$660.4 billion (S$29.36 billion), with operations returning to normal and shipments increasing at its Zhengzhou campus in China, a centre for iPhone production, the company said in a statement.

Compared to the previous month, revenue was up 4.93 percent with smart consumer electronics products, which include smartphones, and computing products showing strong double-digit growth, it said.

Production of iPhones faced disruption ahead of Christmas and January's Lunar New Year holidays, after curbs to control Covid-19 prompted thousands of workers to leave Foxconn's factory lines in Zhengzhou.

Analysts say Foxconn assembles around 70 percent of iPhones, and the Zhengzhou plant produces the majority of its premium models including the iPhone 14 Pro.

"Based on market consensus for the first quarter of 2023, January revenue came in slightly ahead. The outlook for the first quarter will likely reach market expectations," Foxconn said without elaborating.

Analysts expect first-quarter revenue to grow by around 4 percent year-on-year, according to Refinitiv.

Apple last week forecast its revenue would fall for a second quarter in a row but that iPhone sales were likely to improve as production had returned to normal in China after the Covid-related shutdowns.

Foxconn shares have slid 0.3 percent so far this year, underperforming the broader Taiwan market which is up 10.4 percent.

The company reports fourth-quarter earnings, where it will also elaborate on its outlook, on March 15.

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