iPhone: Hon Hai Precision Industry, better known as Foxconn, published the company’s financial report for the first quarter of 2021 with good and bad news.
According to the company, which is the main contractor for the production and assembly of products such as the iPhone, the beginning of the year 2021 was positive for the technology market with an increase in the consumption of electronics. In all, it recorded revenue of $ 1 billion in the first months of the year – an increase of approximately 20% from what was forecast for the period.
The bad news
However, all the excitement should be stopped in the second quarter of the year, which ends at the end of June 2021. This is because, according to Bloomberg, the component crisis in the industry should hit the company hard, impacting both its financial results and ( even more) device inventory.
Foxconn President Young Liu commented that the waiting list for some components is at 52 weeks and that the company’s shares, which peaked in March, have already dropped 20% when the crisis became more evident. Apart from the low stock in general, places of high importance in the assembly of iPhones were impacted by lockdown measures against the pandemic of COVID-19, such as India.
In an attempt to alleviate the problems, the manufacturer set up a partnership with Yageo Corp. for the manufacture of cheaper chips and accelerated production. In addition, it seeks other sources of contracts that do not involve the missing parts, such as the electric car sector.