Foxconn anticipates a drop in revenue during the first quarter, specifically related to their supply of Apple iPhones.

• In 2023, Foxconn Technologies experienced a decrease in year-over-year revenue for both the last quarter and December.
• A huge iPhone manufacturer, the company is also one of Apple's largest suppliers.
• Barclays and Piper Sandler downgraded their ratings on Apple stock earlier this week.

Foxconn, the supplier and lead iPhone assembler, reported a revenue drop for the final quarter of 2023 and expects a year-over-year decline in sales for its first quarter of 2024.

In the last three months of the year, Foxconn's revenue was NT $1.85 trillion ($59.7 billion), a 5.4% decline from the previous year. The company attributed this decrease to weak sales in its computing, smart consumer electronics, and cloud and networking products. Additionally, Foxconn's December revenue fell 27% year over year.

Apple stock has experienced two downgrades this week, with both firms citing declining iPhone sales as the reason.

Barclays analysts noted in a Tuesday note to investors that they are still observing weakness in iPhone volumes and mix, as well as a lack of bounce-back in Macs, iPads, and wearables.

The latest checks revealed incrementally worse IP15 data points from China, which also affected the performance of developed markets. This led to a decline in shares of Foxconn and other Apple suppliers such as Taiwan Semiconductor Manufacturing Company on Tuesday.

Piper Sandler issued a downgrade on Thursday, with analyst Harsh Kumar expressing concerns about handset inventories entering the first half of 2024 and feeling that growth rates have peaked for unit sales. Kumar expects a recovery in the handset market during the second half of 2024.

Since the beginning of the year, Apple's stock has fallen approximately 6%.