Apple's Key Supplier Foxconn Reports 9% Decline In Q1 Revenue, Anticipates Growth In Future

Foxconn HNHPF a key supplier for Apple Inc. AAPL, saw a 9% decline in its first-quarter revenue for 2024.

What Happened: The company’s first-quarter revenue totaled 1.32 trillion NT$ ($41.2 billion), CNBC reported on Friday. This figure represents a 9.6% drop from the same period last year and is 28.58% lower than the fourth quarter of the previous year.

The disclosed revenue fell short of economists’ predictions in an LSEG poll. Nevertheless, Foxconn projects a revenue increase for the second quarter of 2024, despite it being typically considered an “off-peak season.”

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Why It Matters: The revenue dip comes amid Foxconn broadening its horizons beyond being an Apple supplier. In March, the company announced its intent to enter the AI server market through a strategic partnership with Nvidia.

Meanwhile, Apple expects its revenue and earnings per share (EPS) in the March 2024 quarter to drop for the first time in a decade due to declining iPhone sales. Analysts have pointed out that Apple’s struggles in China are less about the company and involve a much bigger "geopolitical kerfuffle."

Apple is also reportedly planning to introduce more affordable AirPods and an updated AirPods Max version later in 2024. This move could potentially boost Foxconn’s production and subsequently its revenue.

On the stock front, shares of Foxconn closed at $9.75, with a 52-week high of $9.9 and a low of $5.6401.

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