Main Apple provider Foxconn reported a ten% year-over-year decline in revenue for 2022 and anticipated a decline in client electronics demand for the total yr forward, the corporate mentioned in its earnings report Wednesday.

The unfavourable sentiment mirrored Apple’s muted expectations for client gross sales. When Apple reported first-quarter 2023 outcomes, Chief Monetary Officer Luca Maestri mentioned the corporate anticipated double-digit declines for Mac and iPad gross sales for the approaching March quarter in comparison with the prior yr. The corporate added iPhone gross sales will decline much less within the March quarter in comparison with the Dcember quarter.

Foxconn will proceed to broaden its presence past mainland China, and mentioned that the exploration of latest markets was a key precedence for the corporate in 2023. Earlier this yr, Foxconn dedicated to a serious enlargement of its presence in India.

Foxconn beat analysts’ top-line estimates, recording 511.85 billion Chinese language yuan for the total yr, versus a consensus estimate of CNY493.95 billion, based on FactSet, however missed on the underside line with a web revenue of CNY20.07 billion.

Taiwan-based Foxconn is a serious producer for client expertise companies, however is finest recognized for its relationship with Apple, which depends on Foxconn to provide and assemble its iPhone, amongst different merchandise.

Foxconn’s iPhone manufacturing facility in Zhengzhou garnered consideration in late 2022 after movies of Foxconn workers fleeing the power within the midst of stringent covid lockdowns unfold worldwide. The Chinese language authorities has since pulled again on probably the most aggressive of its Covid protocols, however Apple and different main expertise corporations have emphasised to suppliers a must diversify past China.

Demand for digital items has slowed dramatically as customers grapple with the realities of a largely post-pandemic world. World macroeconomic uncertainty has additionally dampened discretionary revenue, making it tough for corporations to proceed the tempo of fast progress many loved from 2020 to late 2021.

An Apple spokesperson declined to remark.