Apple's iPhone production orders were transferred from factories and suppliers affected by the anti epidemic sealing measures to Foxconn, which minimized the production impact of the measures. As a result, Foxconn's parent company Hon Hai Group also continued to maintain a high boom, giving the best first quarter financial report since 2014.
Due to the influence of covid-19 Apple About half of the company's 200 suppliers in and around Shanghai were affected. However, apple avoided the impact of the embargo by transferring orders to Foxconn.
Foxconn has now announced its highest first quarter net income in eight years, the Financial Times reported. A large part of this is because companies such as apple have transferred their orders to Foxconn OEM factories with more production lines and production areas, rather than alternative suppliers affected by the embargo.
Liu Yangwei, chairman of Foxconn, said on the earnings conference call on May 11, 2022: "the impact of the pandemic on logistics is huge. There are many variables in the market due to the pandemic, supply chain, geopolitics and inflation. Usually in this case, we will be more cautious, but this has also improved our visibility recently."
He said Foxconn's profit prospects were quite optimistic after the increase in the OEM market share of tablet and notebook computer production and the strong demand for server and desktop computer business.
Among them, many desktop computers are produced in Foxconn's Mexican factory. The cross-border transfer of orders has little impact on Foxconn because the company has production bases all over the world and many different factories in China.
Foxconn's net profit in the first quarter of 2022 was $993.5 million, a year-on-year increase of 5%.