Foxconn increases annual forecast for 2022 amidst strong tech demand

By Akshay Kedari  | Date: 2022-07-07

Foxconn increases annual forecast for 2022 amidst strong tech demand

Foxconn, a prominent contract electronics manufacturer, has reportedly increased its full-year business outlook as a result of robust sales of servers and smartphones, despite concerns over demand drops due to rising inflation.

The Taiwanese company has suffered from a significant chip scarcity like other international manufacturers that have hampered the production of smartphones, particularly those for its major client Apple, in part because of COVID-19 lockdowns in China.

However, the business claimed in a statement that effective supply chain management and soaring consumer electronics sales were to account for June revenues increasing 31% from a year earlier to a record high for the month. Most of the company’s revenue comes from smartphones.

Foxconn's higher-than-anticipated June sales came as investors worry about declining electronics demand during a slowdown in major markets brought on by high inflation and the conflict in Ukraine.

After memory chip manufacturer Micron Technology Inc. forecasted significantly lower-than-expected revenue for the present quarter, chip stocks all over the world fell on Friday. But Foxconn expressed optimism for its company in the third quarter and added that it might experience a substantial increase when compared to the same period last year.

Without giving further specifics, Foxconn said that the forecast for 2022 had changed from earlier predictions of no growth.

The business, formerly known as Hon Hai Precision Industry Co. Ltd., said that so far this year, sales of servers and telecommunications products have increased by double digits annually. The company claims that while COVID-19 controls in China maintained employees on-site in a "closed-loop" system, it only had a little impact on the company’s production processes.

If market speculations are right, the demand for servers from U.S.-based cloud service providers contributed to the industry's double-digit rise, thus anticipating a 12–19% increase in Foxconn's operating profit this year.

Source Credit:

https://www.aljazeera.com/economy/2022/7/5/taiwans-foxconn-raises-full-year-outlook-on-strong-tech-demand-2

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More >>

More News By Akshay Kedari

Federal Reserve increases interest rates amidst US banks’ failure

Federal Reserve increases interest rates amidst US banks’ failure

By Akshay Kedari

Despite the instability in the global financial market, the U.S. central bank has hiked its interest rates once again. The Federal Reserve has reportedly increased its rate by 0.25 percentage points. While the institution has warned other banks that ...

Apple delays employee bonuses, stops hiring amid cost-cutting efforts

Apple delays employee bonuses, stops hiring amid cost-cutting efforts

By Akshay Kedari

Apple has reportedly decided to delay the bonuses of certain divisions, alongside a halt on new hiring as part of its efforts to cut back costs. With this move, the firm joins its peers in Silicon Valley in trying to optimize workload during tough ti...

China focuses on growth of renewable energy usage amid coal boom

China focuses on growth of renewable energy usage amid coal boom

By Akshay Kedari

China is making rapid progress in limiting the emission of carbon by focusing on the expansion of renewable energy. According to the Global Energy Monitor, in 2022, China has approved its highest number of new coal-fired plants since 2015. This ha...

China factories expand production, record fastest pace in the decade

China factories expand production, record fastest pace in the decade

By Akshay Kedari

China’s manufacturing activity has reportedly shown rapid growth at the fastest pace of the decade, following the lifting of the COVID-19 restrictions in late 2022. The country’s official purchasing managers’ index (PMI) rose to 52....

Amazon employees sound off on recent work from office policy

Amazon employees sound off on recent work from office policy

By Akshay Kedari

Amazon employees have reportedly expressed disagreement about the company recent mandates asking employees to return to office for work. This included the spamming of an internal website with messages of opposition against the new policy. An inter...