The coronavirus has had a huge impact on Apple (NASDAQ: AAPL) provider Foxconn. The Taiwan-based iPhone assembler saw its monthly revenue drop sharply for February.
Foxconn’s February 2020 revenues fell 18.13% to $ 217.5 billion T (about $ 7.26 billion), compared with sales of $ 265 billion, according to the company’s website. T dollars ($ 8.85 billion) in the prior year period. It was the second consecutive month of decline after sales fell 12% to $ 364.56 billion T ($ 12.17 billion) in January 2020 as well.
This is the biggest drop in Foxconn’s monthly revenue in seven years, according to a Reuters report. In the first two months of 2020, the company’s sales fell 14.4%.
Earlier this month, Foxconn released its outlook for the first quarter of 2020, predicting a 15% drop in its electronics and telecommunications segment. On March 3, the company confirmed that production had resumed, reaching 50% of its required capacity. It plans to operate at full seasonal capacity by the end of this month.
The virus epidemic has put severe strains on Apple and supply chain partners. While Apple has confirmed that it will miss revenue estimates for the March quarter, we have also found that the company will struggle to provide replacement phones to consumers due to the impact of the terrible COVID epidemic. -19.
Another Apple supplier, Qorvo, also cut its forecast for the March quarter. The chipmaker initially forecasted quarterly sales of $ 800-840 million and has since revised its estimates to $ 770 million.
Apple shares are trading 1.3% at the time of writing, and are down almost 12% from records.