Foxconn expects improved performance in 2024 and warns of chip shortages

Liu Yong-wei, chairman of the company's board of directors, said on Sunday: “We did well despite the large write-down in the first quarter last year,” referring to the write-down in book value. Its 34 percent stake in Japanese electronics maker Sharp Corp.

Liu told reporters at the company's annual staff party in Taipei: “In terms of expectations for this year, I think it will be a little better than last year.”

Foxconn last November said its forecasts for 2024 were “conservative and relatively neutral”.

Liu said demand for AI servers will “definitely” be good, but global economic uncertainty in light of existing geopolitical issues will affect demand for consumer products.

Liu explained that one sector of the market will do well, but many sectors will face difficulties.

On Thursday, Apple expected a decline in iPhone sales, while its target total revenue was about $6 billion, below Wall Street expectations, as a result of damage to its business in China.

The results reinforced some analysts' concerns that the company's unique product is losing ground in a key Asian market where consumers buy foldable phones and other phones from Huawei powered by Chinese-made chips.

Manufacturing capacity for server chips is limited even with strong demand, Liu said.

“According to demand, new factories may be required,” he added.

Foxconn, formally known as Hon Hai Precision Industries, is scheduled to report fourth-quarter earnings next month and will also update its forecasts for the year. The company is expected to release January sales data tomorrow, Monday.

Foxconn shares are down 2.4 percent since the start of the year, giving the sector a gain of about 0.7 percent.

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