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Foxconn (OTCPK:FXCOF), an Apple (AAPL) supplier, reported on Monday that its revenue in May increased 5% M/M but down 9.5% Y/Y as a result of weakness in smart consumer electronics during the customary low season.
The revenue of the Taiwanese electronics company last month was NT$450.7B ($14.7B), which was in line with estimates.
Revenue in Smart Consumer Electronics Products delivered double-digit growth, while Computing Products, Components and Other Products as well as Cloud and Networking Products performance were flattish M/M.
Revenue in Cloud and Networking Products and Components and Other Products was flattish YoY, while Computing Products and Smart Consumer Electronics Products declined Y/Y.
Cumulative revenue in the first five months of 2023 was NT$2,342.6B, down 2.08% Y/Y.
Q2 Outlook: The outlook for the second quarter remains unchanged from earlier guidance. Performance is expected to decrease on a Q/Q and Y/Y basis, due to two factors:
- The seasonal off-peak period as new and old products transition
- A high base from an unseasonally strong pull-in in the first half of last year which occurred as the components shortage from 2021 eased.
Since Apple and other big electronics sellers release new items around the time of the year-end holiday season, Foxconn often experiences sluggish first-half sales.
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