Foxconn, an iPhone assembler, reported an 8.3% drop in revenue in December last year because of“Consumer Product Category”Demand has fallen sharply. Although the company did not give a more specific explanation, the decline in demand for the iPhone seems to be the most likely explanation given Apple's downgraded holiday season revenue expectations.
According to Reuters, Foxconn reported in a filing with the stock exchange that revenue fell to NT$613.3 billion last December, an 8.3% decline. This is the first time that Foxconn's monthly revenue has fallen year-on-year since February last year. A representative of the company explained that:“The main reason is that consumer products have declined considerably.”Earlier, it was reported that Apple's iPhone production would drop by 4 million units this quarter. And on Wednesday, a new report showed that Apple will cut its iPhone production by 10% further this quarter.
Foxconn's revenue fell in December, in line with a report in the Wall Street Journal in November last year. At that time, the report said that Apple was reducing orders for the iPhone XS and the iPhone XR.
Last week, Apple announced a $5 billion to $9 billion cut in its revenue forecast for the first quarter of fiscal year 2019. The news caused a big uproar and caused a severe blow to Apple's stock price. Analysts have downgraded Apple's stock, which has continued to this day. Although Foxconn's revenue does not represent good or bad sales of the iPhone, after all, the company is also assembling products for a variety of customers and producing its own products, but considering that Apple has confirmed the decline in sales of the iPhone, the link seems quite obvious.
Another concern for Foxconn is that legal disputes between Apple and Qualcomm are continuing. Last month, it was reported that Apple might shift more production of the iPhone from Foxconn to Heshuo to avoid being affected by the ban on the iPhone.