One of the major manufacturers of Apple – Foxconn, announced a healthy growth of operations in the first month of this year – hoping to reach the analyst’s expectations for this quarter.
Foxconn was hit with worker protests and COVID-19 lockdowns late last year and had to delay the production orders of several of its clients. One of the most affected in this space is Apple, which saw weak growth due to supply chain issues from Foxconn.
A Strong Growth After Utter Failure
The Taiwanese manufacturing giant – Foxconn released a sales report on Sunday stating its strong growth in the first month of this year – where it earned a revenue of 660.4 billion Taiwan dollars ($22 billion)!
This is a 48% jump from the same period last year and its highest-ever level for that month. Foxconn attributed this growth to a strong rebound at its Zhengzhou campus in China – which faced severe problems late last year.
Starting in October 2022, the plant workers left the site due to concerns about Covid-related working conditions and shortages of food. Though Foxconn hired more people with bonuses to suffice the staff shortage, strict regulations from the state resulted in more protests at the plant.
Workers clashed with security officers and were given cash to quit the company and leave immediately. All this chaos disrupted the business to a significant extent that – Apple, Foxconn’s major client, suffered the worst.
This led market analysts to predict that Apple may expand out of China to address its supply chain issues – as it saw its worst earnings during the holiday season resulting from Foxconn issues.
Well, the manufacturer has quickly solved all these to restart working on its terms – where the Zhengzhou plant was reported to be working at 90% of capacity by the end of December 2022.
Anyhow, the manufacturer is now good with “better components supply”, says in its report. It noted double-digit growth in two of the most important divisions – smart consumer electronics (smartphones and televisions) and computing products – (laptops and tablets) in January 2023.