Taiwan tech giant Foxconn saw its sales fall nearly 12% last month, blaming a slowdown in its smartphone business for the slump.
The world’s largest contract electronics maker and major iPhone assembler said on Friday that revenue in April fell 11.77% year-on-year – and it expected business to drop again this quarter.
Foxconn said revenue last month reached T$429.2 billion ($14 billion), in line with the company’s own expectations.
For smart consumer electronics products, which include smartphones and are the company’s main business driver, revenue in April declined as it entered the “traditional slow season”, the company said in a statement.
Business in the second quarter is expected to decline due to a high base last year and “the seasonal off-peak period” amid a transition between old and new products, it said.
The first half of the year is traditionally slower for Taiwan tech manufacturers as major electronics vendors including Apple launch new products near the year-end holiday season.
Apple results for the quarter ended April 1 beat expectations on Thursday, thanks to better-than-expected iPhone sales and inroads in India and other newer markets.
Foxconn will report first quarter earnings on May 11 when it will also give an update on its outlook for the full year.
The company in March predicted revenue for the full year to be flat, with weak demand for consumer electronics offset by growth in computing, cloud, networking and component products.
Foxconn shares have risen 5.1% so far this year, lagging the broader Taiwan market, which is up 10.5%.
- Reuters with additional editing by Sean O’Meara