Foxconn’s Q2 earnings report on Wednesday showed that the company’s Q2 net profit reached NT$33.29 billion (US$1.11 billion), up 12 percent from a year earlier, driven by strong sales of Apple’s (AAPL.US) iPhone. However, Foxconn is cautious about the outlook for the third quarter, expecting a slowdown in smartphone demand.
Foxconn noted that rising inflation will have a limited impact on mid- to high-end smartphones, but after significant growth, consumer demand for certain devices will decline.
“Overall, we are slightly cautious about the third quarter, although we can still achieve growth compared with the same period last year,” said the company’s chairman, Y.W. Liu, on a conference call.
Foxconn believes that without other geopolitical issues, supply chain conditions could be better in the second half of 2022 than in the first half.
Looking ahead, Foxconn expects cloud and networking products to perform strongly in the next quarter and said overall revenue will rise this year.
