Weak iPhone sales drag Foxconn's revenue down in December2
After ten consecutive months of growing income, Foxconn today announced that its revenues declined 8.3% year-over-year in December 2018 to $20.12 billion. According to the company, this drop was primarily attributed to a “rather big” drop in “consumer category products.” Predictably, the multi-national company failed to single out one particular product but it’s fair to say that most of this revenue shortfall is likely down to Apple.
Throughout the month of November, the Cupertino giant was reported to have cut iPhone production multiple times due to the recently-confirmed lack of demand. And considering Foxconn currently produces the largest share of iPhones, weaker revenue numbers in December were ultimately unavoidable, even if the company does have multiple other customers.
Moving forward, it appears Foxconn’s revenue numbers could take further hits. For one, yet another iPhone production cut was reported as recently as last week. And to make matters worse, it seems Apple could soon move more of its production to Pegatron in the hope of avoiding further sales bans – it currently faces bans in both China and Germany.