iPhone producer Foxconn reported a sharp decline in revenue last month, despite increased sales following the reopening in China. In February, its turnover fell by almost 12 percent to 12.2 billion euros after conversion, according to the Taiwanese company yesterday.
The company’s massive iPhone assembly complex in the Chinese city of Zhengzhou largely resumed production in January after the severe disruption caused by strict anti-corona measures.
Much of market experts’ attention is now focused on how the iPhone’s popularity is holding up as global demand for smartphones weakens. According to Foxconn, the outlook for the first quarter of this year “is more or less in line with market expectations.” The company is basing itself on the sales figures for the last two months.
Foxconn, also known as Hon Hai Precision Industry, plans to invest $700 million in a new factory in India to increase production. However, in recent times, several manufacturers have announced their intention to leave China due to the growing tensions between Washington and Beijing.
Last year, Foxconn was the target of China’s efforts to stem covid infections. Company founder Terry Gou warned the government that strict anti-corona measures would hurt China’s position in the global economy.
Previously, the corona had spread to Zhengzhou and the Foxconn factory, also called iPhone City. Staff members then left the factory because they did not want to share dormitories with confined people. At one point, there were even clashes between the workers and the security personnel of the factory.