Apple iPhone manufacturer FoxConn warns on waning electronics demand, reliance on China - Yahoo Finance

Yahoo Finance Live looks to iPhone manufacturer FoxConn's latest forecasts on demands for electronic devices and the overall reliance on China.

Video transcript

SEANA SMITH: Kicking off with my play today. And that is Apple. Its largest supplier here, FoxConn, warning that it does expect declining demand for consumer electronics in the coming year. You're looking at Apple off just about 2/10 of a percent, was off well over 1% earlier in the trading session. Well, that of course, did put pressure on the tech giant's stock. FoxConn's outlook lining up with what we have heard from Apple in the past in its most recent earnings report when it forecasted another drop in revenue.

IPhone sales falling over the holiday period, the very important holiday period, for the company, declining 8%. That drop was the first drop that we've seen in iPhone sales since 2000, since 2020. Now when you take a look at this announcement from FoxConn, it's also planning to rely less on China, which currently accounts for about 70% of FoxConn's revenue, that move coming after Apple has pushed its suppliers to diversify beyond China, no surprise there, following some of those production disruptions that we did see during COVID.

So Josh, it sounds like the road might be a little bit tough for the iPhones, for some of Apple's products here, at least in the near term. Maybe we'll see Apple rely even more so on its services business, how it's looking to diversify its revenue base.

JOSH SCHAFER: Seana, you're missing the story on Apple. We got to talk--

SEANA SMITH: I was trying to set you up for it.

JOSH SCHAFER: I know. We got to talk about the fun one, right? "Ted Lasso" is out. Season three on Apple TV Plus today. It's one of Apple's most popular shows. I know I'm very excited for it. I think you're very excited for it?

SEANA SMITH: Are you that big of a fan?

JOSH SCHAFER: Yeah.

SEANA SMITH: OK.

JOSH SCHAFER: I don't got anything going on tonight. We're going to watch episode one of "Ted Lasso". But I think when you talk about Apple TV Plus here, one of the exciting things with "Ted Lasso" is that it will be a weekly release. And sort of how that helps subscribers I think is going to be something that's interesting to watch for Apple. Are you watching?

SEANA SMITH: I will watch. Am I going to watch tonight? Probably not. I'll be totally honest. But I do love "Ted Lasso". You know why? It's funny. And also, the episodes are pretty short. So you don't have that risk of falling asleep, which I am very guilty of every single time--

JOSH SCHAFER: Ines, you're a soccer fan. "Ted Lasso" fan, or no?

INES FERRE: Yeah. I don't watch. I'm not going to watch because I have a two-year-old. And I just can't. OK?

SEANA SMITH: I know. It's hard to watch. It's hard to keep up with all the shows when you have kids. I can relate to that one.

JOSH SCHAFER: But "Ted Lasso" hopefully for Apple will bring in some watchers into the MLS2, a new venture that Apple has going with soccer.

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