iPhone Maker Foxconn Q4 Earnings Drop YoY, Miss Street Estimates

Apple IncAAPL supplier Foxconn on Monday reported a 4% fall in quarterly profit as the Taiwanese contract electronics maker speeds up the shift towards electric vehicles, Bloomberg reported. 

What Happened: Hon Hai Precision Industry Co’s HNHPF, popularly known as Foxconn, net income for the fourth quarter ended December, fell to NT$46 billion ($1.6 billion) missing analyst estimates of NT$50.2 billion, according to the report.

Foxconn’s revenue grew 15% to NT$2 trillion ($70.13 billion) led by the iPhone 12 series, launched last year, and elevated demand for home computing due to the pandemic.

See Also: How to Buy Foxconn Stock in the U.S.

The Taiwanese company is however looking at other growth opportunities and is known to have identified electric vehicles as a key emerging industry. Foxconn announced plans to develop EVs with Fisker Inc FSR even as numerous speculations have emerged over who could be Apple’s potential partner for its rumored self-driving electric vehicle foray.  

Besides Fisker, Foxconn has in recent months announced partnerships with China’s Zhejiang Geely Holding Group Co., and Byton Ltd BYDDF as it looks to strengthen its automotive capabilities.

Why It Matters: The company had previously forecast fourth-quarter revenue to be in a range of a decline of 3% and gain of 3% from a year earlier.

Foxconn has been looking to strengthen its automotive capabilities at a time when its biggest client is seeking a foray in the electric vehicle space. Not just Foxconn joins a host of tech companies looking to make electric vehicles.  

Price Action: Shares of Apple closed 0.15% higher, Fisker shares closed 6.25% lower and Byton 4.4% lower on Monday.

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