Apple Supplier Foxconn Sees 2022 As 'Challenging' While Bringing 'Opportunities Not Seen In Decades'

Apple, Inc.'s AAPL contract manufacturer Hon Hai Precision Industry Co., Ltd. HNHPF issued positive commentary on demand outlook, which has hopeful implications for many U.S. tech companies.

What Happened: Taiwan-based Hon Hai, popularly known as Foxconn, said it expects an exceptionally strong first quarter, the Nikkei reported, citing the company. Foxconn sees most of its key manufacturing complexes working overtime during the upcoming Chinese New Year holiday.

The weeklong holiday extends from Jan. 31 to Feb. 6 this year.

"The Lunar New Year is a time for family reunions. But as our performance in the first quarter is likely to outperform [typical years], we will only have two days of holidays at several important facilities," Foxconn Chairman Young Liu reportedly said in an online speech at the company's year-end event.

The projected performance is commendable, as the first three months of the year are typically slow for consumer electronics manufacturers. Foxconn's major customer Apple usually sees slowing iPhone sales momentum during this period following strong holiday quarter performances.

Liu also noted that the company ended 2021 with record revenues of 5.93 trillion Taiwanese dollars ($214.03 billion).

Foxconn's announcement is good news for U.S. tech companies, as the contract manufacturer also supplies products and components to companies such as Microsoft Corporation MSFT, Amazon, Inc. AMZN, among others.

2022 Challenging But Promising: Foxconn's chief reportedly said 2022 is likely to be a challenging year. The difficulties, however, will bring with them opportunities not seen for decades, he added.

The next two big trends in the tech industry, according to Liu, are EVs and the metaverse. While noting that Foxconn has made significant progress in the EV arena, Liu said the company plans to play a significant role in the software and hardware for the metaverse.

Foxconn will continue to invest to boost its chip manufacturing capabilities, he added.

Photo: Courtesy of iphonedigital on Flickr

Market News and Data brought to you by Benzinga APIs

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Comments