Foxconn, a major assembler of Apple’s (NASDAQ:AAPL) iPhones, reported a 48.2% year-over-year jump in its January revenue to 660.4 billion New Taiwan dollars ($22 billion) as the company recovered from COVID-led disruptions in China. The Taiwan-based company is estimated to assemble about 70% of iPhones.
Foxconn’s January top line increased 4.93% compared to December 2022, with operations at the company’s Zhengzhou facility returning to normal. Worker unrest at the Zhengzhou facility due to stringent COVID measures significantly impacted iPhone production ahead of the Christmas and Lunar New Year holidays.
Revenue from the company’s Smart Consumer Electronics Products (which includes smartphones) and Computing Products divisions increased by double-digits year-over-year. In fact, the Smart Consumer Electronics Products category posted double-digit revenue growth even on a month-over-month basis, while the Computing Products category reported “significant growth MoM.”
Foxconn highlighted that its January revenue came in “slightly ahead” of market consensus and that its Q1 2023 revenue will “likely reach market expectation.” As per Reuters, analysts expect Q1 2023 revenue to increase by 4%.
Last week, Apple reported weak results for the December quarter as production disruptions in China impacted the tech giant’s ability to meet the demand for iPhones. Apple expects its March quarter year-over-year revenue growth for iPhone to accelerate compared to the December quarter. However, it anticipates Mac and iPad revenues to decline by double digits year-over-year due to tough comparisons and macro challenges.
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Wall Street has a Strong Buy consensus rating for Apple based on 23 Buys and five Holds. The average AAPL stock price target of $172.40 implies 11.6% possible upside. Shares have advanced over 23% since the start of this year.