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Foxconn Reiterates Q2 Revenue to Grow, Posts Record April Sales

Foxconn shareholders look at wafers on display after the annual shareholder meeting in New Taipei City, Taiwan May 31, 2023. REUTERS/Ann Wang/File Photo Purchase Licensing Rights
Foxconn shareholders look at wafers on display after the annual shareholder meeting in New Taipei City, Taiwan May 31, 2023. REUTERS/Ann Wang/File Photo Purchase Licensing Rights
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Foxconn Reiterates Q2 Revenue to Grow, Posts Record April Sales

Foxconn shareholders look at wafers on display after the annual shareholder meeting in New Taipei City, Taiwan May 31, 2023. REUTERS/Ann Wang/File Photo Purchase Licensing Rights
Foxconn shareholders look at wafers on display after the annual shareholder meeting in New Taipei City, Taiwan May 31, 2023. REUTERS/Ann Wang/File Photo Purchase Licensing Rights

Taiwan's Foxconn, the world's largest contract electronics maker and the biggest assembler of Apple's iPhone, reiterated on Sunday it expected a rise in second-quarter revenue, and reported record sales for the month of April. Foxconn (2317.TW), said in a statement that this year's second quarter "remains a traditional off-peak season, and major products are entering a period of transition between old and new products".

But it added: "The operations outlook for the second quarter is expected to show both quarter-on-quarter and year-on-year growth".

The statement did not elaborate and the company does not give numerical guidance, Reuters reported.

The company, formally called Hon Hai Precision Industry Co Ltd, said April revenue reached T$510.9 billion ($15.83 billion), which it said was the highest figure on record for the same period and represented an on-year rise of 19%.

Revenue in its smart consumer electronics products, including smartphones, in April showed "significant growth" year-on-year, it said.

Strong artificial intelligence (AI) server demand also delivered "strong growth" in April on-year for its cloud and networking products segment, the company added.

The monthly sales data comes ahead of Foxconn's first-quarter earnings call on May 14.

Foxconn has previously reported that for the first quarter, revenue slid 9.6% year-on-year to T$1.322 trillion, underperforming a T$1.401 trillion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate.

The first quarter is traditionally quieter than the previous one, the season when Taiwan's tech companies race to supply smartphones, tablets and other electronics to major vendors such as Apple for Western markets' year-end holiday period.

Apple's (AAPL.O) quarterly results and forecast beat modest expectations on Thursday, and CEO Tim Cook said revenue growth would return in the current quarter.

In March, Foxconn adopted a far more bullish outlook for this year, saying on its fourth-quarter earnings call that it expected a significant rise in revenue driven by booming demand for AI servers.

Foxconn's shares have surged almost 50% so far this year, compared with a 13% gain for the broader market (.TWII.)

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Technology

Samsung, SK Urge Employees to Cut Car Use Amid Rising Energy Risks

FILE - The logo of the Samsung is seen at the Samsung Electronics' Seocho building in Seoul, South Korea, Friday, July 5, 2024. (AP Photo/Lee Jin-man, File)
FILE - The logo of the Samsung is seen at the Samsung Electronics' Seocho building in Seoul, South Korea, Friday, July 5, 2024. (AP Photo/Lee Jin-man, File)
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Samsung, SK Urge Employees to Cut Car Use Amid Rising Energy Risks

FILE - The logo of the Samsung is seen at the Samsung Electronics' Seocho building in Seoul, South Korea, Friday, July 5, 2024. (AP Photo/Lee Jin-man, File)
FILE - The logo of the Samsung is seen at the Samsung Electronics' Seocho building in Seoul, South Korea, Friday, July 5, 2024. (AP Photo/Lee Jin-man, File)

South Korean tech giants Samsung Electronics and SK Group said they were asking employees to curb private car use and follow fuel-saving measures after South Korea rolled ⁠out emergency energy-conservation steps ⁠amid instability in Middle Eastern energy supplies.

Internal notices showed the companies encouraging car-use restrictions ⁠such as a five and 10-day vehicle rotation system, reduced parking availability and other energy-saving practices at offices from Thursday for Samsung and from March 30 ⁠for ⁠SK.

The moves follow government guidance aimed at cutting fuel consumption as concerns grow over prolonged disruptions linked to the Iran-related energy crisis.

Technology

Epic Games to Cut More Than 1,000 Jobs as Fortnite Usage Falls

The Epic Games logo, maker of the popular video game "Fortnite", is pictured on a screen in this picture illustration August 14, 2020. (Reuters)
The Epic Games logo, maker of the popular video game "Fortnite", is pictured on a screen in this picture illustration August 14, 2020. (Reuters)
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Epic Games to Cut More Than 1,000 Jobs as Fortnite Usage Falls

The Epic Games logo, maker of the popular video game "Fortnite", is pictured on a screen in this picture illustration August 14, 2020. (Reuters)
The Epic Games logo, maker of the popular video game "Fortnite", is pictured on a screen in this picture illustration August 14, 2020. (Reuters)

Epic Games said on Tuesday it would cut more than 1,000 jobs after a drop in engagement for "Fortnite," its flagship title, the latest cuts in the video-game industry whose growth has stalled amid economic uncertainty.

The cuts, along with more than $500 million in savings from lower contracting and marketing spending and unfilled roles would put the company in "a more stable place," Chief ‌Executive Tim Sweeney said ‌in a note to employees.

The ‌cuts ⁠are the latest ⁠in the gaming sector, where companies have faced weaker growth as consumers have been sticking with proven titles amid economic uncertainty.

But even those, especially live services games, which depend on a steady stream of new content to ⁠keep players engaged, are now showing signs ‌of cracks.

"We've had ‌challenges delivering consistent Fortnite magic," Sweeney said, adding "market conditions ‌today are the most extreme" since the early ‌days of the company founded in 1991.

"The layoffs aren't related to AI," Sweeney noted amid industry worries the technology could replace video-game developers.

The move marks ‌Epic's second major round of layoffs in three years. In September 2023, ⁠the company ⁠cut about 830 jobs, or roughly 16% of its workforce.

It was not immediately clear what percentage of staff would be impacted by Tuesday's announcement.

The gaming sector has faced mounting pressure. In September, Electronic Arts laid off hundreds of workers and canceled a Titanfall game that was in development at its Respawn Entertainment unit, according to media reports. Amazon's broader job cuts late last year also affected its gaming division.

Technology

Chinese Firms' Involvement in 5G Network May Deter Investors, EU Warns Vietnam

EU Commissioner for International Partnerships Jozef Sikela speaks during the EU-Vietnam business and investment forum in Hanoi on March 24, 2026. (Photo by Nhac NGUYEN / AFP)
EU Commissioner for International Partnerships Jozef Sikela speaks during the EU-Vietnam business and investment forum in Hanoi on March 24, 2026. (Photo by Nhac NGUYEN / AFP)
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Chinese Firms' Involvement in 5G Network May Deter Investors, EU Warns Vietnam

EU Commissioner for International Partnerships Jozef Sikela speaks during the EU-Vietnam business and investment forum in Hanoi on March 24, 2026. (Photo by Nhac NGUYEN / AFP)
EU Commissioner for International Partnerships Jozef Sikela speaks during the EU-Vietnam business and investment forum in Hanoi on March 24, 2026. (Photo by Nhac NGUYEN / AFP)

The involvement of Chinese vendors in the rollout of Vietnam's 5G network may deter foreign companies from investing in the Southeast Asian nation, a top EU official said on Tuesday.

European telecom firms Ericsson and Nokia are developing Vietnam's core 5G network, but in recent months Vietnamese state-owned operators have awarded 5G contracts to Chinese rivals Huawei and ZTE.

That marks a notable shift following years of caution towards China, and the change has ⁠sparked concerns among ⁠Western officials.

"Be careful with dependencies in strategic areas," EU Commissioner for International Partnerships Jozef Sikela said when asked about the Chinese contracts.

"5G is the new battlefield," he told Reuters on the sidelines of an EU-Vietnam investment forum in Hanoi. "Through the network you can access a lot and you can control a lot, ⁠and you have to be always careful who is your trusted vendor."

"If investors have doubts about the security of their data, they might decide not to take the risk and not to invest," he said.

Vietnam's foreign ministry and the Chinese embassy in Hanoi did not immediately reply to emailed requests for comment.

Vietnam is a major industrial hub and hosts large manufacturing operations of big Western multinationals, including European firms Adidas and Lego. Its decades-long economic boom hinges on foreign investment.

The European Union and European states ⁠on Tuesday ⁠announced a new package of investment in Vietnam's transport and energy sector.

Sikela said risks to future investments from unsecure networks were at this stage theoretical, and noted that several European countries allowed Chinese telecom vendors in the past.

Huawei and ZTE are banned from the telecom networks of several European countries and in the United States, because they are seen as risks to national security.

The companies have criticized the restrictions as unfair, rejecting the concerns as baseless.

Vietnamese officials have said that Chinese telecom equipment is reliable and cheaper, while downplaying security risks. Additional contracts with Chinese firms are under discussion, Reuters reported earlier this month.