Even the factory that makes iPhones thinks demand for iPhones will decline overall this year

2023 is shaping up to look like a bleak year not just for smartphones in general, but even for the mighty iPhone.

Foxconn, the factory that makes most of the world's iPhones, recently reported its largest quarterly fall in profits in three years. 

In the first quarter of this year, Foxconn's profits were down 56% year-over-year. However, back then, the company was optimistic and expected demand to pick up later this year when Apple unveils the iPhone 15 series.

Now, however, the company is not so positive. It recently reported a 30% slide in operating income for the second quarter of 2023. 

And while net profits only fell 1% to US$1 billion, which exceeded analysts' predictions of US$812 million, most of it actually came from non-manufacturing-related deals.

To this end, Foxconn is now predicting the sales of the iPhone and other smartphones to decline overall this year.

This is despite rumours suggesting that the iPhone 15 Pro and Pro Max will get significant updates in the form of a new cutting-edge 3nm chip, more storage, a new design, and even a periscope lens.

This outlook is shared by Sony, who said just a week ago that it does not expect the smarpthone market to recover until next year.

Source: Bloomberg

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