Mobile News

iPhone assembler Foxconn is set to update its fourth-quarter outlook after COVID restrictions are lifted at a major factory in China

Apple supplier and iPhone assembler Foxconn plans to update its fourth-quarter guidance on Thursday, warning this week of the impact of COVID-19 restrictions at a major plant in China’s Zhengzhou.

Foxconn’s main plant in Zhengzhou in central China, which employs about 200,000 people, has been shaken by dissatisfaction with the strict measures to contain the spread of COVID-19, and many workers have left the site.

The lockdown ended on Wednesday, although Foxconn said it supports “closed-loop” operations, referring to the bubble arrangement commonly applied as part of China’s virus prevention measures, where employees sleep, live and work in isolation from the rest of the world.

Foxconn said on Monday it was working to resume full capacity production there as soon as possible and, after previously targeting “cautious optimism” in the fourth quarter, said it would “revise” its forecast to reflect developments in Zhengzhou, though not provided no details. .

Foxconn is to release third-quarter earnings on Thursday at 12:30 pm EST, with analysts expecting earnings to average NT$41.3 billion (roughly Rs. 10,600 crore), according to Refinitiv, up 11 .7% more than last year. driven by strong demand for high quality consumer electronics and data centers.

The company said it would also provide an update on its outlook for the current quarter; although it does not give a numerical prediction, only a general prediction in terms of general direction.

A source familiar with the situation said Foxconn plans to fully resume production at its Zhengzhou plant by the second half of November.

Apple said on Monday that it expects lower shipments of high-end iPhone 14 models than previously thought, following a significant production cut at its virus-hit factory in China, which hurt its sales forecast for the year-end holiday season.

The fourth quarter is traditionally a hot season for Taiwanese tech companies as they rush to ship mobile phones, tablets and other electronics to Western markets during the holiday season at the end of the year.

Shares of Foxconn, officially known as Hon Hai Precision Industry Company, rose 2.5% on Wednesday, outperforming the market by 2.2%.

The stock is down 1.4 percent this year.

© Thomson Reuters 2022

Apple released the iPad Pro (2022) and iPad (2022) this week along with the new Apple TV. We discuss the company’s latest products along with our iPhone 14 Pro review on Orbital, a Gadgets 360 podcast. Orbital is available on Spotify, Gaana, GioSaavn, Google Podcasts, Apple Podcasts, Amazonian music and wherever you get your podcasts.
Affiliate links may be generated automatically – see our ethics statement for details.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button