Foxconn, the world’s largest contract electronics manufacturer and a key supplier for tech giant Apple, has revised its outlook for the fourth quarter, anticipating robust year-end sales during the holiday peak season.
Traditionally, the fourth quarter marks a pivotal period for Taiwan’s tech companies as they gear up to supply smartphones, tablets, and various electronics to major vendors, notably Apple, catering to the Western markets’ year-end holiday demand.
In a statement released on Tuesday, Foxconn highlighted that the second half of the year, typically considered the industry’s peak season, has exhibited slightly stronger revenue performance in the initial two months of the fourth quarter than initially anticipated.
“While specific numerical guidance was not provided, the company indicated an improvement in the fourth-quarter outlook beyond the earlier projection of ‘significant growth,’” Foxconn stated, without providing further details.
Despite not offering exact figures, Foxconn disclosed that its revenue for last month amounted to T$650 billion ($20.65 billion), marking the second-highest recorded figure for the month. This figure represents an 18 percent year-on-year increase, although it reflects a 12.3 percent decline from October’s revenue.
The surge in revenue from smart consumer electronics, including smartphones, contributed to substantial year-on-year growth. However, this growth was juxtaposed against a relatively subdued performance last year due to COVID-related restrictions impacting its primary iPhone production base in China’s Zhengzhou.
Recognized as Apple’s largest iPhone assembler, Foxconn indicated notable year-on-year growth in revenue for components and other products in November. This surge was attributed to amplified allocations in smart consumer electronics and escalating shipments in the automotive components sector.
Despite a surprise 11 percent increase in third-quarter profit last month, Foxconn had previously forecasted a slight decline in revenue for the year. However, the recent surge in year-end sales has prompted the company to raise its expectations for the final quarter, underscoring a more optimistic outlook amid strong market demand.
Foxconn’s upward revision in its Q4 projections underscores a positive market sentiment and amplifies the significance of the holiday season as a key revenue driver for tech manufacturers, particularly in the production and supply of consumer electronics.