Apple Supplier Foxconn Expects Quarterly Sales to Fall as iPhone Doubts Grow

Apple’s iPhone 15 went on sale in September, to a mixed early reaction in key markets.

By Jane Lanhee Lee, Bloomberg | Updated: 5 January 2024 16:47 IST

Apple Supplier Foxconn Expects Quarterly Sales to Fall as iPhone Doubts Grow

Photo Credit: Apple

China will again be a focal point of challenges for the iPhone this year

Highlights

Foxconn reported a steep 27 percent drop in December sales
iPhone 15 sales in China have declined
China's Huawei is reclaiming market share with its premium Mate 60 series

Hon Hai Precision Industry warned of its fourth consecutive decline in quarterly sales after a 5.4 percent slide in the last three months of 2023 suggested consumer electronics demand remains muted.

The Taiwanese firm, also known as Foxconn, reported a steep 27 percent drop in December sales to NT$460.1 billion ($14.8 billion, or roughly Rs. 1,23,073 crore), concluding a NT$1.85 trillion quarter. It now sees sales falling in the current period as well, adding to concern about the latest iPhone generation's momentum heading into the new year.

As Apple's foremost iPhone assembly partner, Foxconn provides insight into broad consumer demand for personal tech. Apple's iPhone 15 went on sale in September, to a mixed early reaction in key markets: the US saw it kickstart an upgrade cycle from earlier iterations while sales in China declined.

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China will again be a focal point of challenges for the iPhone this year, as the ban on the handset and other Apple hardware at Chinese agencies and state-backed companies has widened and local tech giant Huawei Technologies is reclaiming market share with its premium Mate 60 series.

Foxconn has also been the subject of a regulatory investigation in China, which shook investors and the confidence of foreign companies operating in the country late last year. The Taiwanese device builder is facing a growing challenge from Chinese rival Luxshare Precision Industry, which is set to expand its iPhone production capacity.

iPhone sales volume is likely to grow 2 percent this year, short of the overall mobile market growth of 5 percent, according to Counterpoint Research associate director Liz Lee. Huawei's smartphone sales, on the other hand, are expected to grow 37 percent. This week, Barclays and Piper Sandler cut theirs ratings for Apple due to soft demand for its latest iPhone.

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Foxconn is reliant on Apple for the bulk of its revenue. Its cumulative sales in 2023 were NT$6.16 trillion, down 7 percent.

Apple launched the iPad Pro (2022) and the iPad (2022) alongside the new Apple TV this week. We discuss the company's latest products, along with our review of the iPhone 14 Pro on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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Apple iPhone 15

REVIEW
KEY SPECS
NEWS

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Big upgrades over the 14
Excellent ergonomics, build quality
Very good all-round performance
Apple ecosystem benefits

Bad
Relatively slow charging
Expensive
Still a 60Hz display

Read detailed Apple iPhone 15 review

Display 6.10-inch

Processor Apple A16 Bionic

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel

RAM 6GB

Storage 128GB, 256GB, 512GB

OS iOS 17

Resolution 1179x2556 pixels

More Apple mobiles Apple mobiles price in India

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