Apple’s major vendor Foxconn says revenue in Feb 2020 dropped $1.6B

Foxconn, the Apple's Major Vendor, Says Revenue in Feb Dropped $1.6B

Foxconn is one of Apple’s largest suppliers. It is one of the biggest iPhone manufacturing factories which closed in February due to coronavirus outbreak. Earlier, Apple warned that it would not meet the production needs this quarter. Foxconn shares how coronavirus affects its business. 

According to the report by CNBC, Foxconn, the world’s largest contract electronics maker, said its revenue fell from approximately $8.87 billion to $7.26 billion, or 18.13%, from last year. Revenue decreased by 40.35% month over month. Several other suppliers also reported weak production due to coronavirus. 

In the middle of February Foxconn, shutdown and one other factory only had 10% of its staff. The operations resumed later, but the company faced a lot of trouble getting the employees back to work. The company used a work bonus and food to have the workers back to work. 

In February, Apple didn’t expect to meet its quarterly revenue forecast due to lower iPhone supply due to small production in China. Apple’s 15% revenue comes from that region.  

According to Apple’s CEO Tim Cook, “When you look at the parts that the Chinese factories manufacture, we have reopened factories. The factories are working through the conditions to open. They’re reopening,” he is hopeful that China is getting control over the virus, which is a good sign for the future of production.

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