09 Apr 2020 -
 General

Demand for consumer electronics dries up, Foxconn revenue plunges

Demand for consumer electronics could drop by as much 20% during 2020, according to the Market Intelligence & Consulting Institute (MIC) as reported by the Taipei Times.

According to a recent report by Market Intelligence & Consulting Institute (MIC), the COVID-19 pandemic may impact integrated device manufacturing (IDM) companies worldwide and their packaging and test capacity in Southeast Asia.

The article reports comments from MIC deputy general-director, Chris Hung, that while Taiwanese manufacturers have, for the most part, resumed operations in China, lockdowns in multiple other countries are affecting production, as well as logistics, which could delay shipments of components and end products.

Hung is also reported to say that smartphones are just not a consumer priority and that once out of lockdown, “most people would prefer to spend their money on eating out at restaurants, purchasing cosmetics and other commodities”.

This appears to be born out by recent figures from Hon Hai Precision Industry Co aka Foxconn, who earlier this week posted a 7.69 percent year-on-year decrease for March 2020, its fourth consecutive month of annual declines. Revenue for the first quarter fell to NT$929.68 billion, an 11.99 percent year-on-year decrease and the lowest level in six years, according to Hon Hai.

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