Foxconn, the world's largest contract electronics maker and the assembler of products like Apple's iPhones, stated that third-quarter profits had risen 11.27% from the previous year, outperforming analysts' prognoses in spite of persistent troubles with the consumer electronics industry. The Taiwanese corporation reported operating revenue decreasing 11.64% year-on-year to NT$1.543 trillion, and net income improving 11.27% to NT$43.13 billion, an outcome exceeding assumptions.
Foxconn, also known as Hon Hai, reported a 11.27% year-on-year rise in profit for the quarter ended September, surpassing analysts' expectations despite a consumer electronics market slump. The Taiwanese firm generated operating revenue of NT$1.543 trillion, a 11.64% decline compared to the same period a year ago, while net income increased to NT$43.13 billion. This was higher than the NT$35.078 billion that had been anticipated.Counterpoint Research statistics showed that global smartphone sell-through volumes rose 2% from the previous quarter, but were 8% lower year-on-year, representing its weakest third quarter numbers in a decade and extending the run of consecutive declines to nine quarters. A sell-through happens when a customer makes a purchase directly from the store.
Counterpoint Research reported on October 17th that volumes had declined year-on-year due to the sluggish recovery in consumer demand. However, the market's quarter-on-quarter growth, particularly the strong performance in September even whilst the new iPhones had only been available for a week, may be indicating better news for the future. Apple released its iPhone 15 series on the 22nd of September.Research firm Canalys reported last week that the global smartphone market was experiencing a deceleration in its decline. The 3rd quarter of 2023 saw a just 1% drop according to Canalys' data.Canalys declared on the 17th of October that the smartphone market had recorded a double-digit sequential growth in the 3rd quarter, signifying a revival in activity leading up to the sales seasons. Amber Liu, an analyst at Canalys, reported that the launch of Huawei's Mate 60 Pro had stirred 'enthusiastic' demand in Mainland China, while Apple had amped up demand for its iPhone 15 series by improving its performance and functions.The current downturn in the global economy has had a damaging impact on the smartphone market. As macroeconomic indications become more uncertain, consumer spending on electronic products such as smartphones has taken a sizeable hit. In the face of rising inflation, consumers have been cutting their expenditures on consumer devices.
Foxconn stated in its recent financial report that it anticipates its activities to be influenced in 2024 by monetary regulations, inflation, geo-politics and macroeconomics. In August, the Indian state of Karnataka's government declared that Foxconn would invest over $600 million for setting up a phone production project and a distinct semiconductor equipment facility. According to Young Liu, chairman and CEO of Hon Hai, India can constitute 20% to 30% of his company's fabrication, which is "quite similar to China", he declared to CNBC last month. Chinese state media Global Times reported in October, as per unnamed sources, that a host of locations of Hon Hai's subsidiaries across China have been subjected to taxation audits and on-site probes into land utilization.
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