Apple supplier Foxconn announced its second quarter financial results on Wednesday, local time. Among them, the company's Q2 net profit reached NT $33.29 billion (US $1.11 billion), up 12 percent year on year and beating market expectations. However, Foxconn is now cautious about its outlook for the third quarter and expects smartphone demand to slow.
Foxconn noted that the impact of rising inflation on mid-range and high-end smartphones would be limited, but that sales of smartphones, TVS and other electronic products would decline after a "significant increase" in the second quarter due to the impact of the pandemic and the recession, which may dampen consumer spending.
And, like other global manufacturers, the company is grappling with a severe shortage of chips. Foxconn said it expected flat revenue growth in its consumer electronics business, which includes smartphones, in the quarter ending in September.
At the same time, Foxconn's chairman, Liu Yongwei, said on a conference call, "Overall, we are a little cautious about the third quarter, but we can still grow compared to the same period last year."