Taiwan’s Foxconn, the world’s largest contract electronics manufacturer and a significant Apple supplier, remains optimistic about strong year-end holiday sales.
The company noted that customers in China and the United States are making robust purchases, aligning with its previous expectations.
The fourth quarter typically signifies a peak season for Taiwan’s technology companies as they strive to meet the demand for smartphones, tablets, and other electronics during the year-end holiday period in Western markets, particularly from major clients like Apple.
Foxconn issued a statement affirming that the second half of the year represents a “traditional peak season” for consumer tech products, and as a result, operations will progressively intensify, aligning with its previously communicated outlook.
The company stated, “Significant growth outlook in the fourth quarter compared to the third quarter remains unchanged,” without providing further details.
In October, Foxconn reported revenue of T$741.2 billion ($23.09 billion), marking the second-highest October revenue in its history.
While this figure reflected a 4.56% decrease year-on-year due to a high base comparison, it also indicated a notable 12.2% increase from September.
Notably, the smart consumer electronics segment, including smartphones, witnessed substantial month-on-month growth, driven by new product launches.
The anticipation of China’s Singles Day shopping event and the Thanksgiving holidays in the United States also contributed to this surge in demand.
Foxconn holds a significant role as Apple’s largest iPhone assembler, and its fortunes are closely tied to Apple’s product sales. Notably, Apple had recently provided a sales forecast for the holiday quarter that fell short of Wall Street’s expectations due to weaker demand for iPads and wearables.
Foxconn is set to release its third-quarter earnings on November 14, offering more insights into its future outlook.
In terms of its stock performance, Foxconn’s shares in Taipei had experienced a 1.2% decline on the Friday before the October sales announcement, while the broader market gained 0.7%.
Year-to-date, Foxconn shares had declined by 4%, resulting in a market value of $41.5 billion.