Foxconn boosts profits by 90% due to factory closure from Corona 19

The corona 19 epidemic has had a serious impact on business management. Taiwanese manufacturer Foxconn is also one of the places that showed greater results than the previous quarter. Profits fell by a whopping 90% year-on-year, mainly due to plant closures in China.

As of March, Foxconn has already announced this to investors. It had to blame the unprecedented uncertainty of a virus, while failing to provide clear guidance on yearly performance. Chairman Liu Yang-wei stressed that anti-proliferation work and resumption of production are Foxconn’s top priorities.

Two months have passed since this, but uncertainty remains. In an announcement recently, Chairman Liu Yang-way said that there are many unknowns about the one-year outlook, and that it is not possible to present the outlook for the second half of 2020. But he added that the next quarter’s sales decline will be much smaller than this one.

The slightly brighter outlook for the next quarter is mainly due to the resumption of normal production after the end of January 2020 at most Chinese factories. Three-quarters of Foxconn’s production capacity is in China. However, as many companies are expected to experience sluggish smartphone sales, the demand for Foxconn service is also decreasing, which is unlikely to be an ideal number.

Apple, one of Foxconn’s large clients, is also known to delay the launch of its next flagship model due to lack of consumer demand and supply chain. Related information can be found here .