Sales at Top Apple Supplier Foxconn Fall 7.7% in March

Hon Hai Precision Industry, best known as Foxconn, is a key assembler of Apple devices.
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Sales at Hon Hai Precision Industry were down by 7.7% in March, the company reported in a filing to the Taiwan stock exchange.  

Hon Hai, better known as Foxconn, reported sales of T$347.7 billion dollar ($11.51 billion) in March, down from T$376.6 billion a year earlier. 

In the quarter ended in March, sales totaled T$929.7 billion, down 12% year-over-year. Foxconn's profits also fell 23.7% in the last quarter of 2019 as worked to mitigate the impact of the coronavirus epidemic. 

Foxconn is one of the largest electronics manufacturers in the world, and assembles the bulk of Apple's  (AAPL) - Get Report iPhones as well as other Apple devices. 

Global demand for smartphones and other discretionary goods, such as automobiles, has plunged in the midst of the coronavirus pandemic. Research firm CCS Insight forecast that smartphone sales will drop 13% in 2020, marking its worst year in a decade. 

Apple's retail stores outside of China are currently closed. The company reportedly may begin opening some retail stores in early May, at which time a stay-at-home order in the Bay Area may have been lifted. 

Apple shares were up 5.18% on Monday to $253.90.

In China, widespread travel restrictions and business closures upended the supply chains for a wide range of products, including Apple devices, throughout the Lunar New Year holiday and beyond. Smartphone shipments fell 38% in February owing to coronavirus-related disruptions. 

Foxconn told the press on March 23 that it was "ahead of schedule" in recovering from coronavirus-related labor shortages.

The company is expected to hit peak production around late July, at which time it would normally be assembling iPhones for a fall release.