Foxconn December revenue dips, first time in 10 months

Taiwan’s Foxconn, a key Apple Inc supplier, reported a 8 percent fall in its December revenue on Thursday, dampening its performance in 2018 amid tepid demand for electronics.

Foxconn, formally known as Hon Hai Precision Industry Co Ltd, said in a stock exchange filing that revenue fell 8.3 percent to T$619.3 billion ($20.12 billion) in December.

It is its first year-on-year monthly revenue dip since February.

The revenue performance for December compared to consolidated revenue of T$675.1 billion in December last year, which then represented a 50 percent year-on-year rise.

“The main reason is that the fall for consumer category products was rather big,” a company representative told reporters, explaining the reason for December’s revenue dip.

Foxconn said 2018 sales increased 12.5 percent compared to 2017.

Warning signs about the health of the electronics sector have lingered in recent weeks, with Apple Inc cutting its first quarter revenue forecast and attributing its iPhone revenue shortfall primarily to Greater China.

On Wednesday, the Nikkei Asian Review reported Apple had reduced planned production for its three new iPhone models by about 10 percent for the January-March quarter.

Foxconn’s chairman Terry Gou said last year the spat between China and the United States was the biggest challenge the company was facing.