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It seems the future fiscal quarters wouldn’t be easy for Apple as Foxconn’s parent company itself, Hon Hai Precision Industry Co., predicts smartphone sales to contract “slightly.” According to a report from Bloomberg, the Taiwanese company believes this is expected this quarter and for the rest of 2023. This spells trouble for Apple as it continues to prepare for its latest iPhone 15 line launch in September.

Hon Hai mentioned the prediction after an earlier forecast about flat revenue for 2023 sales. According to the report, the giant saw a “larger-than-expected 30% slide in operating income to NT$30.9 billion ($968 million) for the June quarter.”

This follows Foxconn‘s biggest quarter profit decline in three years. Unfortunately, it seems this challenging climate will continue, with Hon Hai squashing Foxconn’s hope that the second half of the year will be better. As Bloomberg has underlined, the global economy is still unfavorable for consumers, pushing many to postpone spending on electronics. 

The prediction covers device companies around the globe. Yet, it sends the biggest warning to Apple, which heavily relies on Foxconn as its primary iPhone assembler. And with the iPhone 15 launch set in September, such a forecast from a partner is something hard to ignore. Sadly, a problematic series of months seems inevitable for Apple’s iPhone, with analysts previously underlining the continuous slowdown in the smartphone market globally.


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