iPhone Assembler Foxconn Posts 56% Plunge In Q1 Profit, Warns Of More Weakness

Apple, Inc.'s (NASDAQ:AAPL) main iPhone assembler Hon Hai Precision Manufacturing Company Limited (OTC:HNHPF) reported Thursday a slump in first-quarter profit and guided to weak consumer electronic revenue for the second quarter.

The Taiwanese company reported a first-quarter net profit of NT $12.8 billion ($417.17 million, down over 56% from NT $29.45 billion in the year-ago quarter, Reuters reported. The consensus estimate called for a profit of NT $29.18 billion, the report said, citing Refinitiv’s estimate.

Chairman Liu Young-way attributed the sharp decline to an asset write-off from the non-operational business without shedding more light, the report said.

Hon Hai, better known as Foxconn, said it expects revenue from its consumer electronics segment to decline year-over-year in the second quarter. The company expects second-quarter revenue to fall but added 2023 revenue would remain flat.

The Apple supplier also tempered its expectation from the cloud and networking product business, expecting flat performance in 2023. Earlier the company expected significant growth for these segments.

Foxconn’s shares trading over the counter in the U.S. ended Wednesday’s shares down 0.13% at $6.78, according to Benzinga Pro data.

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