Foxconn Forecasts Tough Operating Environment From Pandemic

Foxconn Technology Group, Apple Inc.'s largest iPhone assembler, predicts a tougher operating environment this year due to ongoing pandemic, geopolitical events, and the impact of inflation on the global supply chain.

The company also restarted production at some of its factories in the southern Chinese city of Shenzhen after a coronavirus outbreak led it to suspend operations in the city. 

As the Covid19 pandemic enters its third year, causing production shortages and shortages of critical components such as semiconductors, companies are tackling rising commodity prices and supply chain disruptions. Russia's invasion of Ukraine only exacerbated the problem as Ukraine's ports were closed and oil and commodity prices soared.

Taiwan-based Foxconn (formerly Hon Hai Precision Industry Co.) saw a 37% increase in net income last year and a record high of NT $139.3 billion, equivalent to $4.9 billion with an increase in cloud and networking products, and consumer electronics products. Still, net income for the October-December quarter was down by 3% year-over-year.