Apple’s iPhone 15 series devices will be on display for sale at The Grove Apple retail store in Los Angeles on launch day, September 22, 2023.
Patrick T. Fallon | AFP | Getty Images
apple iPhone supplier and main assembler Foxconn on Friday reported a decline in sales for the final quarter of 2023 and said it expects sales for the first quarter of 2024 to be down year-on-year.
Foxconn’s revenue totaled NT$1.85 trillion ($59.7 billion) in the last three months of this year, down 5.4% from a year earlier. Foxconn attributed the decline to weak or flat sales of computing products. Smart home appliances and cloud and networking products. The company’s sales in December also fell 27% compared to the same period last year.
The outlook comes after Apple stock was downgraded twice earlier this week. Both companies pointed to sluggish iPhone sales.
“iPhone sales volume and mix remain weak, with recovery for Macs, iPads and wearables lagging,” Barclays analysts said in a note to investors on Tuesday.
“The biggest takeaway from the latest research is that China’s IP15 data points are gradually deteriorating, and developed markets remain weak,” the memo said, referring to the iPhone 15. ” he said. The downgrade weighed on the stock prices of Foxconn and other Apple suppliers. It was established as Taiwan Semiconductor Manufacturing Company on Tuesday.
Piper Sandler announced the downgrade on Thursday. “We are concerned about device inventories going into the first half of 2024 and feel that unit sales growth has peaked,” Piper Sandler’s Harsh Kumar wrote. He said he expects the device market to recover.
Apple stock has fallen about 6% since the beginning of the year.