The company's Chairman of the Board of Directors, Liu Yong-wei, said on Sunday: “We did a good job last year despite being subjected to a large write-down in the first quarter,” referring to a write-off in the book value related to its 34 percent stake in Japanese electronics maker Sharp Corp.
Liu told reporters on the sidelines of the company's annual employee party in Taipei: “Regarding the expectations for this year, I think it may be a little better than last year.”
Foxconn said last November that its forecasts for 2024 were “conservative and relatively neutral.”
Liu said that demand for AI servers will be good “of course,” but global economic uncertainty in light of existing geopolitical issues will affect demand for consumer products.
Liu explained that one sector of the market will perform well, but many other sectors will face difficulties.
On Thursday, Apple expected a decline in iPhone sales, while its targeted total revenues amounted to about six billion dollars, that is, less than Wall Street expectations, as a result of damage to its business in China.
The results reinforced some analysts' concerns that the company's distinctive product is losing ground in the key Asian market, where consumers are buying foldable phones and other phones from Huawei, powered by a Chinese-made chip.
Production capacity for server chips is limited even with strong demand, Liu said.
“In terms of keeping up with demand, new factories may be needed,” he added.
Foxconn, formally known as Hon Hai Precision Industries, is scheduled to report fourth-quarter earnings next month and will also update its forecasts for this year. The company is expected to publish January sales data tomorrow, Monday.
Foxconn shares have declined 2.4 percent since the beginning of the year, compared to gains achieved by the sector of about 0.7 percent.
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