Apple’s Supplier Foxconn’s Sales Decline due to Coronavirus

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The activities of Foxconn, one of Apple’s most important product suppliers, were affected by the coronavirus outbreak. The sales of the company, which reported to Taiwan Stock Exchange, decreased by 7.7% in March.

The coronavirus epidemic, which affects the whole world, negatively affects the electronics industry as well as many other industries. Foxconn, headquartered in Taiwan, operating in the field of electronic manufacturing services, announced the sales figures for March.

Notifying the Taiwan Stock Exchange, Foxconn sold $ 347.7 billion in March. This amount was $ 376.6 billion in the same period last year. In the first quarter of 2020, the total sales amounted to $ 929.7 billion. Sales fell 12% compared to the same period of the previous year. In March, the company’s sales fell by 7.7%.

The coronavirus affected Foxconn’s revenues:
In the period of coronavirus epidemic, Foxconn’s profits decreased, as well. The company’s profit, trying to reduce the impact of the outbreak, fell 23.7% in the last quarter of 2019. Foxconn is one of the world’s largest electronics manufacturers and Apple’s supplier.

Global demand for other optional products, such as smartphones and cars, has dropped amid the coronavirus epidemic. Research firm CCS Insight predicts that smartphone sales will drop 13% in 2020 and will see its worst year in 10 years. Apple’s retail stores outside of China are currently closed due to the outbreak. It is stated that the company may start opening some retail stores in early May, while the decision to stay at home in the Bay Area area of ‚Äč‚ÄčCalifornia may have been lifted.

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Apple shares rose 5.18 percent to $ 253.90 on Monday. In China, widespread travel restrictions and business closures, Chinese New Year holidays and restrictions in other areas have caused problems in supply chains for a variety of products, including Apple devices. Smartphone shipment dropped 38% in February due to coronavirus-related cuts. Foxconn said on March 23, that it was ‘beyond planned’ to get rid of coronavirus-related workforce shortages.

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