Source: Zero Hedge
“Negative Impact” – Top Apple Supplier Foxconn Warns Over Revenue Hit Top Apple supplier, Foxconn Technology Group, warned Thursday that the Covid-19 outbreak in China would lead to lower full-year revenue. Foxconn said it would “cautiously” resume output at critical facilities in China that have been shut down because of the virus outbreak. “As we are moving ahead with the reopening of mainland China manufacturing complexes in a relatively cautious manner, this will indeed have a negative impact on full-year revenues,” Foxconn said in a statement on the Taipei Stock Exchange’s website. Foxconn is the largest electronics manufacturer in the world, and its ominous warning about supply chain disruptions affecting its full-year revenue guidance follows Apple’s revenue guidance cut for the March quarter due to virus related issues. Supply chain disruptions for Apple and Foxconn could persist through April as labor and part shortages to logistics transportation is a significant challenge in restarting top iPhone manufacturing plants and or at least achieving full capacity.