iPhone maker Foxconn's profits slump 56% in first quarter

Profits for Taiwanese tech giant and key Apple supplier Foxconn fell 56 percent in the first quarter, it announced Thursday, a plunge blamed on weakened demand due to a global downturn.

Foxconn -- also known by its official name Hon Hai Precision Industry -- is the world's biggest contract electronics manufacturer and assembles devices for many international brands, most notably Apple's iPhone products.

For the January-March period, net profit slumped 56 per cent year-on-year to $12.8 billion Taiwan dollars (US$417 million), while revenue rose four percent on-year to $1.46 trillion Taiwan dollars.

During Thursday's earnings call, Foxconn Chairman Young Liu blamed the profit plunge on unspecified "asset write-off from non operational business".

"There was growth in our operational business... We will enhance management of our investments," Liu said without elaborating.

Looking ahead, Liu said the company expects both quarterly and yearly decreases in its smart consumer electronics and other products for the three months to June, which is traditionally a slow season.

"The pandemic-spurred high growth period has come to an end and we are currently in the inventory adjustment period," he said.

But Liu also touted Foxconn's global expansion, most notably in India, where this week the company announced a massive land purchase worth $37 million on the outskirts of tech hub Bengaluru.

"Our footsteps (in India) have surpassed our peers and our scale of business is also the largest... Our capacity planning will be based on client's demand to continue expanding assembly and components layout in India," he said.

"We expect that with the supply chain becoming more and more complete, the competitiveness of Indian manufacturing will gradually emerge," Liu added.