Apple iPhone supply partner Foxconn saw its Q4 profits drop 10% compared to the previous year. The company blames declining demand and predicts flat revenues. Foxconn has been investing heavily in expansion in China, Vietnam, and India.
According to a Reuters report, Foxconn reported its financial situation in an earnings call led by its chair, Liu Young-way. The company said that while it expected significant growth in most areas, consumer electronics was not one of those areas. The company blames this on inflation, and a slowing global economy.
“We maintain a relatively conservative view towards the smart consumer electronics,” said Liu Young-way, “and think they might decline slightly.”
However, Foxconn does expect overall computing demand to go up, particularly for its cloud, networking, and component products.