iPhone maker Foxconn sees lowest quarterly profit in two decades

But it says the worst of the COVID-19 pandemic is over.

What you need to know

• Apple's iPhone maker Foxconn has published its Q1 profits.
• They slumped by a record 90% to a low not seen since 2000.
• Foxconn said that it is seeing growth momentum in Q2, and that the worst is over.

Apple's iPhone maker Foxconn has published its Q1 profit, showing a massive slump of 90%.

As reported by Reuters:

Foxconn's first-quarter profit plunged to its lowest in two decades, all but wiped out, after the coronavirus pandemic forced the Taiwanese firm to suspend manufacturing operations in China and knocked demand from customers including Apple Inc.

"The report does, however, note that Foxconn says the worst of the coronavirus pandemic is over for the company, and that "new growth was to be found in work-from-home lifestyles." In a statement the company said:

"Hon Hai will stabilize in the second quarter"

The 90% slump in profit is the lowest quarterly profit for the company since 2000, revenue declining by 12%.

According to Reuters, the company expects to see "double-digit percentage growth" in Q2 compared to Q1, but still a decline year on year. Whilst enterprise computing is expected to be a source of growth for the country, Foxconn is expecting a 15% decline in smartphone sales. Smartphones accounted for 42% of Foxconn's revenue in Q1.

Foxconn's Chairman Liu Young-way said, " for consumer electronic products, because everyone is staying at home, naturally, it affects consumers' purchasing power and such power might take a very long time to recover."

A recent DigiTimes report suggests that recovery is on the way, as Apple's new iPhone SE helped propel the company to a new April record of $12.72 billion in revenue, an increase of nearly 10% on the month before.

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