iPhone-maker sees huge revenue increase as production ramps up
Foxconn, Apple’s largest manufacturing partner, has reported a whopping 59.9% increase in revenue for March 2020 as production ramps up following COVID-19 disruptions.
It’s not all good news for Apple fans, however. One report warns that while some facilities are running at full throttle, plans for some new products have been scuppered by travel restrictions.
Foxconn has been hit hard by the COVID-19 outbreak. Labour shortages forced the company to close all iPhone manufacturing plants in China for several weeks while revenue plummeted.
Since mid-March, however, those plants have returned to usual production levels, and things are looking up. That’s good news for Apple products planned for 2020, but there’s a catch.
Foxconn reports 59.9% rise in revenue
Foxconn on Wednesday reported consolidated revenues of NT$347.65 billion (approx. $11.56 billion) for March 2020 — up 59.9% from February, but down 7.7% compared to March 2019.
The mammoth increase suggests Foxconn is in full swing for ahead of the 2020 iPhone refresh, which adds weight to recent reports that have claimed Apple’s first 5G smartphones will launch on time.
Digitimes warns, however, that “the coronavirus pandemic has continued to impact [Foxconn’s] manufacturing of new products for some clients who have been unable to send engineers to assist the company in testing and making products.”
Future Apple products could be delayed
The report does not mention Apple specifically, but it could corroborate a March 30 report from Bloomberg, which warned that future Apple products could face setbacks.
This year’s Apple product lineup should escape delays because big decisions and preparations were already made before the COVID-19 outbreak. However, the same preparations for products launching later have been on hold during the pandemic.
Beyond 2020, then, it’s possible Apple fans will be waiting longer for product refreshes. We might see a slow start to 2021 while Apple catches up with component suppliers and manufacturing partners.