Apple supplier Foxconn has warned of a possible slowdown in growth in the current quarter.
The expected decline is driven by several factors, including rising inflation, lower demand, and escalating supply chain problems, in part due to the lockdown in China.
Foxconn, a Taiwanese company, is the world’s largest manufacturer of contract electronics. The company’s forecasts also underscore the urgent need for Foxconn to reduce its dependence on smartphones and consumer electronics.
Electronics accounts for just over half of Foxconn’s total revenue, and the forecast also shows a clear need for diversification in areas such as electric vehicle production, which the company predicts will be a $34 billion business by 2025.
Foxconn Chairman Liu Young-way says inflation is hitting demand for lower-price consumer electronics, but the impact on the company is limited because most of its products are higher end.
In the first quarter that ended in March, Foxconn’s revenue rose 4% and net income rose 5% to $985.48 million.
The sources for this piece include an article in Reuters.