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Foxconn’s Profit Misses Estimates as Pivot to Cars Accelerates

  • Profit fell nearly 4% despite contributions from new iPhones
  • Company says the impact of parts shortages will be limited
relates to Foxconn’s Profit Misses Estimates as Pivot to Cars Accelerates

Photographer: South China Morning Post/Getty Images

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Hon Hai Precision Industry Co. warned that component shortages could persist till 2022 and affect under a tenth of its shipments, amplifying concerns that a global chip crunch could extend well beyond this year.

The assembler of most of the world’s iPhones follows fellow electronics giants that have in recent months suggested a global shortage of semiconductors could be more severe than anticipated, disrupting production of everything from cars to phones. Hon Hai made its projection, which didn’t specify the extent of the hit to its revenue, after reporting quarterly profit that disappointed investors. Its shares slid as much as 3.9% Wednesday.