Apple’s key supplier Foxconn says sales were 7.7% down in March

Starting
in February, the Coronavirus pandemic pushed multiple businesses in China to
resort to suspending operations to minimize the risk of fast-spreading flu-like
virus. The number of new cases in China started going sharply down towards the
end of March that encouraged companies to resume business. As per the experts,
however, businesses are likely to take time before sales return to pre-virus
levels.

In
recent news, Taiwan’s Hon Hai Precision Industry that is commonly known as
Foxconn reported a 7.7% decline in sales in March. Foxconn is one of the
primary suppliers for the U.S tech giant, Apple Inc.

Foxconn
Generates £9.35 Billion In Revenue In March

The
largest electronics maker across the globe, Foxconn, said that it generated £9.35
billion in revenue in March down from £10.12 billion that was recorded in the
same month last year. Foxconn reported these figures to the Taiwan stock
exchange in its filing on Monday.

In
the first three months of 2020, Foxconn posted £25 billion in revenue that
translated to a significant 12% decline as compared to the same quarter last
year. Foxconn released its quarterly financial results in March which highlighted
a massive
23.7% decline in profit in the final quarter of 2019 as the company braced
for the Coronavirus impact that fueled a sharp decline in demand from its
primary customers.

Amidst
the ongoing health crisis and the associated business disruptions, Foxconn had
previously reported an 18.1% decline in its revenue in February. Being a key
supplier for Apple, Foxconn’s struggle, as per the experts, is likely to
reflect in the iPhone maker’s performance as well.

Apple
To Produce Face Shields For U.S Health Workers

In
separate news, Apple
Inc. announced on Monday that it will be taking on the responsibility of mass-producing
face shields for the U.S health workers. The company set an initial target of
one million shields per week, as per its chief executive officer Tim Cook.

At
£1.34 per share, Foxconn is currently trading around 25% down year to date in
the stock market. Its performance in 2019, on the other hand, was reported slightly
upbeat with an annual gain of a little over 10%.

At
the time of writing, Foxconn has a market cap of £1.90 billion and a price to
earnings ratio of 9.97.