Foxconn Lowers Q1 Sales Forecasts; Reports Q4 Sales Decline
TAIPEI – Foxconn expects a year-over-year drop in revenue in the first quarter of 2024 after slower market demand impacted the prior quarter.
The company said overall operations in the first quarter of 2024 are gradually entering the traditional off-peak season, and seasonal performance is expected to be similar to that of the past three years. The company noted that in the first quarter of 2023, as factories resumed normal operation after the pandemic, increasing shipments led to a higher comparison base.
The company's revenue for December 2023 declined 26.9% year-over-year to NT$460.1 billion ($14.9 billion), while sales month-over-month fell 29.2%. Foxconn said the result was better than expected compared to market consensus and for the company.
During the month, Foxconn said Components and Other Products showed strong growth, while Smart Consumer Electronics delivered significant growth. However, Cloud and Networking Products and Computing Products both declined month-over-month. For year-over-year, Foxconn said revenue in Components and Other Products showed significant growth, while monthly revenue of three other Products all declined year-over-year.
Revenue in the fourth quarter declined 5.4% year-over-year to NT $1.85 trillion ($59.7 billion), but grew 20% sequentially. Foxconn noted the result was also better-than-expected compared to market consensus and for the company.
In the Smart Consumer Electronics Products segment, revenue in the fourth quarter saw strong growth both on a quarter-over-quarter and year-over-year basis. For its Computing Products segment, the company said that due to PC market demand slowing, revenue in the fourth quarter slightly declined year-over-year. Meanwhile, as customers stock up ahead of China's Double 11 shopping festival and Thanksgiving holidays, revenue in the fourth quarter was "flattish" quarter-over-quarter. Cloud and Networking Products revenue showed significant growth quarter-over-quarter but declined slightly compared to the prior year.
Revenue for 2023 fell 6.98% year-over-year to NT$6.160T. Components and Other Products' sales were flattish, while Smart Consumer Electronics, Cloud and Networking Products, and Computing Products showed slight declines year-over-year, Foxconn added.
