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Foxconn’s revenue in the first quarter grew by 44%. The company’s pandemic benefits
Foxconn’s desire to reduce its dependence on the smartphone market pushed the company to declare its ambitions in the electric vehicle market, but even with the current demand structure, its financial position can hardly be called unsustainable. In the first quarter, revenues grew by 44% to $ 47 billion, and the continued trend towards remote work of this company promises only benefits.
Image source: Bloomberg
As noted by Bloomberg, the dynamics of changes in Foxconn’s revenue in the first quarter coincided with analysts’ expectations. Since the company is the largest Apple contractor for the production of iPhone, we can conclude that the smartphones of the company from Cupertino of the current generation were in good demand in the first quarter. Game consoles and server hardware also contributed to increasing Foxconn’s revenue, and the overall trend underscores the continued high demand for technical solutions used in the period of remote work and distance learning.
In March, Foxconn representatives reported that the shortage of semiconductor components will force it to cut product shipments by ten percent by the end of the current year, and this phenomenon is unlikely to be eliminated by 2022. Foxconn March Revenue Grows 9.78% Sequentially and 26.91% YoY. On the stock market, the company’s shares are traded under the historical name Hon Hai Precision Industry, and have appreciated 57% in the past six months. Many experts explain this dynamics by Foxconn’s rhetoric aimed at developing the electric vehicle market. By the middle of the decade, the company intends to control at least 10% of the market for contract production of electric vehicles, by 2025 Foxconn’s revenue in the automotive sector could reach $ 35 billion, according to analysts.