apple inc AAPL Offerer Hon Hai Precision Manufacturing Company Limited HNHPF on Sunday reported monthly earnings for February that were down from the same period last year and the previous month.
What happened: Hon Hai, based in Taipei, Taiwan, which is widely known as Foxconn, said its revenue fell 11.65% to NT$402.04 billion (US$13.18 million) in February. Month-on-month, the 39.12% decline from NT$660.36 billion was steeper.
Cumulative revenue for the first two months of the year was NT$1.06 trillion, up about 18% year-on-year and a record total for the period, the company said in a statement. The previous record for the first two months of the year was NT$902.1 billion reported for 2021.
See also: How to buy Foxconn shares in the US
The company noted that its smart consumer electronics products business, which will be transferred to Apple, returned to normal as shipments picked up in January after China abandoned its zero-COVID-19 policy in late December. Revenue in this segment fell year over year in February due to conservative demand from customers, the company added.
Based on sales performance in the first two months of the year, Hon Hai said the outlook for the first quarter is roughly in line with market expectations.
Why it matters: Foxconn reportedly assembles about 70% of Apple’s iPhones, and February’s sales slump is less likely to weigh on Cupertino in its fiscal second quarter.
The tech giant reported last month, First quarter revenue down year over year and missed the consensus estimate as iPhone revenue fell.
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