As a result of year-end solid sales during the Christmas peak season, Taiwan’s Foxconn (2317. TW), the world’s largest contract electronics maker and a major supplier to Apple (AAPL.O), increased its expectations for the fourth quarter on Tuesday.
As a result of the intense competition among Taiwan’s technology businesses to deliver smartphones, tablets, and other electronic devices to prominent vendors like Apple during the Christmas season in Western markets, the fourth quarter is usually considered the most lucrative time of the year for these companies.
According to a statement released by Foxconn, the company’s sales performance in the first two months of the fourth quarter had been somewhat higher than anticipated. This is because the second half of the year is traditionally the peak season for the technology industry.
“Therefore, the outlook for the fourth quarter should be better than the original guidance for’significant growth,'” the business noted, without further explanation.
It is not possible to obtain precise numerical guidance from Foxconn. The firm, formerly Hon Hai Precision Industry Co. Ltd., reported that its sales for October hit T$650 billion ($20.65 billion), the second highest on record for the month. Additionally, the company’s revenue increased by 18% year-on-year despite decreases of 12.3% from October.
The company’s revenue from its intelligent consumer electronics goods, which include smartphones, had a significant year-on-year increase in the most recent month. However, this development came from a low base because the company’s primary iPhone production base in Zhengzhou, China, was coping with constraints due to COVID in the previous year.
This business assembles a significant portion of Apple’s iPhones. In November, revenue for components and other goods showed an excellent year-on-year increase, according to the report. This was “due to increasing allocations in smart consumer electronics products and rising shipments in auto components,” the report noted.
Last month, Foxconn reported a surprising 11% increase in profit for the third quarter. Advances in non-operating income boosted this growth, although the company expected revenue to dip slightly for the season.
Following the announcement of Foxconn’s November sales, the Taipei-listed shares of the company finished the day unchanged on Tuesday. This contrasts with the overall market, which experienced a decline of 0.5% (TWII).
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