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Foxconn Maintains Its Optimistic End-Of-Year Sales Forecast

Foxconn Maintains Its Optimistic End-Of-Year Sales Forecast
The largest contract electronics manufacturer in the world and a significant supplier to Apple, Foxconn of Taiwan, maintained its earlier prediction of robust year-end Christmas sales on Sunday, stating that both Chinese and American consumers were making good purchases.
Taiwan's tech companies typically experience their busiest quarter in the fourth quarter as they compete to supply big vendors like Apple with smartphones, tablets, and other devices in time for the Western markets' year-end Christmas season.
Foxconn maintained its forecast from last month, stating in a statement that operations "will ramp up sequentially" as the second half of the year is a "traditional peak season" for consumer tech products.
"Significant growth outlook in the fourth quarter compared to the third quarter remains unchanged," it added, without elaborating.
Foxconn, formerly known as Hon Hai Precision Industry Co Ltd, reported revenue of T$741.2 billion ($23.09 billion) in October, the second-highest amount ever. The company's revenue was up 12.2% from September and down 4.56% from the previous year due to a high base.
According to Foxconn, revenue from its smart consumer electronics products—which include smartphones—saw "significant" growth month over month as demand was driven by new products and by the fact that the US was celebrating Thanksgiving and China was celebrating Singles Day this month.
The business is the largest assembler of iPhones for Apple.
Apple, which debuted a new line of iPhones in September, disappointed Wall Street with its Christmas quarter sales projection on Thursday, citing a decline in demand for iPads and wearables.
On November 14, Foxconn will report its third-quarter earnings and provide additional information about its forecast.
In comparison to the 0.7% increase for the overall market, Foxconn's Taipei-listed shares finished down 1.2% on Friday ahead of the release of its October sales. With a 4% decline in its stock price this year, Foxconn is now valued at $41.5 billion.

Christopher J. Mitchell

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