Sound the alarm for Apple? Foxconn says it feels the sting of slowing demand for smartphones

Beijing, Aug. 10 (Xinhua)-- Apple supplier Foxconn announced its second-quarter results on Wednesday. Of this total, the company's Q2 net profit reached NT $33.29 billion (US $1.11 billion), up 12% from a year earlier and exceeding market expectations. But Foxconn is cautious about the outlook for the third quarter and expects demand for smartphones to slow.

Foxconn pointed out that the impact of rising inflation on mid-and high-end smartphones is limited, but after "substantial growth" in the second quarter, consumer spending may be curbed by the epidemic and economic recession. sales of smartphones, televisions and other electronic products will decline.

In addition, like other global manufacturers, the company is grappling with a severe shortage of chips. Foxconn said it expected its consumer electronics business, including smartphones, to grow at a flat pace in the quarter to September.

Meanwhile, Liu Yongwei, chairman of Foxconn, said on a conference call, "overall, we are slightly cautious about the third quarter, but we can still achieve growth compared with the same period last year."