Apple’s iPhone 15 collection gadgets are displayed on the market at The Grove Apple retail retailer on launch day in Los Angeles on Sept. 22, 2023.
Patrick T. Fallon | AFP | Getty Images
Apple supplier and lead iPhone assembler Foxconn reported a revenue drop on Friday for the ultimate quarter of 2023 and mentioned it expects a year-over-year decline in gross sales for its first quarter of 2024.
Foxconn revenue for the final three months of the 12 months totaled NT $1.85 trillion ($59.7 billion), a 5.4% dip from the year-ago interval. Foxconn attributed the lower to weak or flat gross sales in its computing merchandise, good shopper electronics merchandise and cloud and networking merchandise. The firm’s December revenue additionally fell 27% year-over-year.
The outlook follows two downgrades to Apple inventory earlier this week. Both companies pointed to softening iPhone gross sales.
“We are nonetheless choosing up weak spot on iPhone volumes and blend, in addition to an absence of bounce-back in Macs, iPads and wearables,” Barclays analysts wrote in a note to investors on Tuesday.
“The greatest takeaway from the newest checks is incrementally worse IP15 knowledge factors out of China, along with developed markets remaining comfortable,” the notice mentioned referring to the iPhone 15. The downgrade put a drag on shares of Foxconn and different Apple suppliers like Taiwan Semiconductor Manufacturing Company on Tuesday.
Piper Sandler issued its downgrade Thursday. “We are involved about handset inventories coming into into 1H24 and likewise really feel that progress charges have peaked for unit gross sales,” Piper Sandler’s Harsh Kumar wrote, noting that he expects a restoration within the handset market someday throughout the second half of 2024.
Shares of Apple are down about 5% for the reason that begin of the 12 months.