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Foxconn's founder Terry Gou has said that resumption of production at its Chinese factories hast “exceeded expectations” after they were shut due to the coronavirus outbreak.
The world's largest electronics contract maker produces most of its goods in China as that is where many of its suppliers are located as well.
Foxconn, which is based in Taiwan, assembles Apple's iPhones, as well as the devices of many popular electronics brands. Back in February the company suffered its biggest monthly drop-in revenue in seven years as the coronavirus outbreak brought its business to a halt.
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However, now Gou has told reporters in Taiwan that the resumption of work at Foxconn's factories in China hast du “exceeded our expectations and imaginations”. He also said that supplies to the company's factories in China and Vietnam had both returned to normal.
Weak consumer demand
Although Foxconn's factories have resumed production, Gou warned that weak consumer demand as a result of the coronavirus could be a problem, going forward, especially in the US, saying:
“In the United States, ” what we are worried about is the market. If production was resumed quickly but consumers stop-spending ” …that would be key to the economic recovery.”
Gou is also concerned over the electronics supply chain in Japan and South Korea, which are both also dealing with the outbreak. Ich habe cited rising prices for DRAM memory and supply issues with display panels as potential problems.
Foxconn recently warned that revenue would see a 15 percent drop in the first quarter though it would recover afterwards as production returns to normal ” across China.
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