Foxconn, the world’s largest contract electronics manufacturer, reported on Thursday that revenue in December fell 12.3% year on year due to production issues with COVID-19 controls at a major iPhone factory in China’s Zhengzhou city.
According to the company, production at the factory in China “basically returned to normal” in December. It didn’t go into detail.
Revenue for December exceeded the company’s expectations, and a “gradual recovery” at its Zhengzhou plant contributed to “double-digit growth” in revenue for its smart consumer electronics business in comparison to November.
A Foxconn source familiar with the matter said the “significant growth” in December compared to the month prior for its consumer electronics business including smartphones showed that major client Apple did not cut orders for its popular iPhones.Revenue for 2022 rose 10.47% from the previous year to a record high, driven by growth across major product lines from smartphones to servers, the company said.
In the fourth quarter of 2022, the Zhengzhou plant grappled with strict COVID-19 restrictions that fuelled discontent among workers over conditions at the factory.
