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Apple Assembly Partner Foxconn Sees First Quarter Profits Drop Nearly 90%

Apple Assembly Partner Foxconn Sees First Quarter Profits Drop Nearly 90%

Apple’s main iPhone assembly partner, Foxconn saw an almost 90% drop in first-quarter profits as the COVID-19 pandemic affected sales of electronic devices around the globe. The company posted its first-quarter numbers on Friday. Foxconn reported a net profit of T$2.1 billion ($70.25 million) for the January-March quarter.

Reuters reports the Taiwanese electronics manufacturer says the worst is over, and that things would “stabilize in the second quarter,” as it expects revenue to show double-digit growth in comparison to the first quarter.

Foxconn had slashed its 2020 revenue outlook in March, following strict quarantines at its China plants during February. The pandemic has slowed enough in the country to allow workers to return to the factories.

The manufacturer had earlier claimed that the pandemic had had a “fairly small impact” on iPhone production, as its factories in other countries like Vietnam, India, and Mexico had been able to pick up the slack.

While the Chinese government is mandating that employers check employee temperatures and supply face masks to employees, as well as providing daily reports on the health of workers, Foxconn has resumed normal operations at its Chinese factories.

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