Apple Supplier Foxconn's May Revenue Falls Amid Rising COVID-19 Cases In Taiwan, After Q1 Profit Beat

Apple Inc AAPL supplier Foxconn reported a 9% fall in May revenue on a month-on-month basis and the slowest monthly sales growth in six months on a year-on-year basis. 

What Happened:  The slowdown came as Taiwan, the island country where Foxconn is based, tackles a spike in COVID-19 cases after recording just a few daily infections for months.

Hon Hai Precision Industry Co HNHPF, popularly known as Foxconn, reported a May revenue of NT$455 billion ($16.38 billion), up 17.6% compared with a year ago. The company had reported an April revenue of NT$500.49 billion.

The Taiwan-based semiconductor maker had last month warned the ongoing chip crisis could worsen in the current quarter with a business impact of 10%. The company’s first-quarter profit beat estimates, helped by an extended work-from-home boom spurred by the COVID-19 pandemic.

Why It Matters: The company which assembles iPhones at plants in China and India saw first-quarter revenue rise 45% despite a sharp reduction in iPhone production in India due to surging coronavirus cases in the country.

Taiwan, at present, is also seeing a spike in COVID-19 infections. Foxconn founder Terry Gou last week announced a charity plan to apply to import 5 million doses of Pfizer Inc PFE/BioNTech SE's BNTX COVID-19 vaccine into Taiwan to speed up its vaccination program, as per a Reuters report.

Price Action: Foxconn shares closed 1% higher at $8.11 on Friday.

Photo by Nadkachna on Wikimedia