Foxconn, one of Apple’s largest manufacturing partners, said that there will be a sharp decline in smartphone sales immediately after the pandemic. According to Foxconn’s statement, the high inflation seen all over the world has also affected the sales of technological products.
Why will smartphone sales fall?
Taiwan-based electronics manufacturer revealed that there is a contraction in demand for technological devices. Among these products are devices that appeal to the end consumer such as smart phones, televisions and computers. A similar situation occurs in technology companies. For example, many smartphone companies have begun to narrow their product range.
Foxconn said consumer electronics, including smartphones, saw significant growth in the second quarter of the year. These operations also accounted for half of the company’s total revenue. But for the rest of the year, mid to high-end smartphones may experience inflation.
It should be noted that Foxconn has also been grappling with the semiconductor chip crisis for a long time. The Taiwanese manufacturer, which managed to meet the demands of its supply partners, recorded a 12 percent increase in net profit and revenue in the April-June quarter.
We don’t know how Foxconn’s partners will follow the sales chart for the rest of the year. However, many investment and technology companies expect a slowdown due to inflation. Foxconn also said it will be cautious in the current quarter.
A similar crisis has happened to Lenovo before. Lenovo, one of the world’s largest computer manufacturers, has announced that it has seen its smallest revenue growth in nine quarters (or the end of the pandemic).
So what do you think about smartphone sales? You can share your views with us in the comments section.
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