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Foxconn’s January revenue hit a record high as China’s Covid-19 disruption subsides

Foxconn’s January revenue hit a record high as China's Covid-19 disruption subsides
Foxconn reportedly assembles roughly 70% of iPhones.


Prominent iPhone manufacturer Foxconn said in a monthly revenue report that its sales in January hit a record high as operations at China’s Zhengzhou complex returned to normal. Production at the world’s largest iPhone plant was affected due to China’s stringent Covid-led restrictions.


The Taiwanese manufacturing giant reported a record revenue of NT$ 660.4 billion (approximately $22 billion) for January 2023. This is an increase of 4.93% on a month-on-month basis and 48.15% on a year-on-year basis. The company’s second-highest revenue was reported in January 2023 with NT$ 500.2 billion (approximately $17 billion).


“With operations returning to normal and products shipments increasing at the Zhengzhou campus, revenue in January delivered strong double-digit growth both on MoM and YoY basis,” Foxconn said; adding that the January revenue was slightly better than market expectations.


Additionally, the company expects revenue for the first quarter of 2023 would meet market expectations. According to a poll by Refinitiv, Foxconn’s first-quarter revenue is expected to grow by around 4% year-on-year.


Production at the iPhone city was affected due to the tumult at the Zhengzhou complex where workers protested against the delay in bonuses, food shortages, and poor living conditions caused by the stringent Covid restrictions in the country. Due to the unrest, the American consumer tech giant Apple could at one point stand to lose close to six million iPhone Pro models, Bloomberg previously reported.


Foxconn later started new hires with the help of the government and offered lucrative bonuses to old employees to attract them to come back to work. Earlier this month, a Reuter report highlighted that the iPhone city’s shipment in December reached about 90% of the anticipated peak capacity.


Foxconn assembles roughly 70% of iPhones, and its factory in the Chinese city of Zhengzhou produces the majority of high-end iPhone models including the latest iPhone 14 Pro, according to a Reuters report.

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