(Yicai Global) March 16 -- Hon Hai Precision Industry, the main Apple supplier better known as Foxconn, predicted business revenue this year will be the same as last year, with mixed performance at different units.

The Taiwan-based company said it expects a dip in revenue from intelligent consumer electronics, but a rise from cloud services, internet-based products, computing devices and parts. 

Foxconn had business revenue of TWD6.62 trillion (USD215.3 billion) last year, an annual rise of 11 percent, and net profit of TWD141.5 billion (USD4.6 billion), up by 2 percent from a year earlier, according to its annual earnings report published yesterday.

Chief financial officer De-Cai Huang said demand remained strong for high-end Apple iPhones and Macbook laptops in 2022. Shipments of servers, electronic components, audio devices and other consumer electronics also rose, Huang said, and the firm expects to find new opportunities in the growing artificial intelligence services sector and autonomous electric vehicles industry.  

Last year, Foxconn’s revenue from smart consumer goods tallied TWD3.51 trillion, making up 53 percent of total income. Business revenue from cloud-based networks and computer-related terminal products contributed 24 and 18 percent, respectively.  

Foxconn also offered clarification about where its production is located, saying the Chinese mainland is the main center for its information and communications technology business, accounting for around 70 percent of capital spending. It also has operations in India, the United States and Mexico. Production in overseas regions will gradually increase to enhance supply chain resilience.

For the fourth quarter of last year, net profit totaled TWD40 billion (USD1.3 billion), down 3 percent from the same period in 2021 and the biggest quarterly slump since the last quarter of 2020. Business revenue rose 4 percent to TWD1.96 trillion (USD63.99 billion) with a gross profit margin of just 5.66 percent, down 37 basis points from a year ago and down 50 bps from the third quarter. 

Editor: Tom Litting