HomeTechnologyGadgetsApple supplier Foxconn to update on outlook after China COVID curbs

Apple supplier Foxconn to update on outlook after China COVID curbs

  • Major Foxconn iPhone factory in China hit by COVID-19 curbs
  • Foxconn lowered its fourth quarter outlook this week
  • Foxconn Holds Q3 Profit Call Thursday 0700GMT
  • Foxconn details outlook downgrade on earnings call

TAIPEI, Nov. 10 (Reuters) – Apple Inc (AAPL.O) supplier and iPhone technician Foxconn (2317.TW) plans to update its fourth-quarter outlook on Thursday after warning this week about the impact of COVID-19 restrictions at a major factory in China’s Zhengzhou.

Foxconn’s main factory in Zhengzhou in central China, which employs about 200,000 people, has been rocked by dissatisfaction with strict measures to contain the spread of COVID-19, with many workers fleeing the site.

The lockdown ended on Wednesday, though Foxconn said it was maintaining “closed loop” activities, citing a bubble-like arrangement commonly imposed as part of virus prevention measures in China, where workers sleep, live and work in isolation from the rest of the world.

Foxconn said Monday it is working to resume full production there as soon as possible, and, having previously sparked “cautious optimism” in the fourth quarter, it said it is “reviewing downwards” its outlook given events in Zhengzhou. , although it gave no details . read more

Foxconn will report its third quarter results Thursday at 0700 GMT, with analysts expecting an average profit of T$41.3 billion, according to Refinitiv, up 11.7% year over year, benefiting from continued demand for premium consumer electronics and consumer electronics. data centers.

The company said it will also provide an update on its outlook for the current quarter; although it does not provide a numerical outlook, only a broad forecast in terms of the general direction.

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A source familiar with the matter said Foxconn aims to resume full production at its Zhengzhou plant by the second half of November.

Apple said Monday it expected lower shipments of high-end iPhone 14 models than previously expected, following a significant production cut at its virus-infected factory in China, dampening its year-end sales prospects. read more

The fourth quarter has traditionally been the hot season for Taiwanese tech companies, which are rushing to deliver mobile phones, tablets and other electronics to Western markets before the end of the year.

Shares in Foxconn, formerly called Hon Hai Precision Industry Co Ltd, closed 2.5% higher on Wednesday, outperforming the broader market. (.TWII) 2.2% increase.

The stock has fallen 1.4% so far this year.

Reporting by Ben Blanchard; Editing by Sherry Jacob-Phillips

Our standards: The Thomson Reuters Trust Principles.



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