news/AAPL/2023.01.05/Apple supplier Foxconn says output recovering despite revenue fall.txt

*2022 revenue reached record high*Zhengzhou plant hit by unrest over COVID curbs, pay*Shares close slightly lowerTAIPEI, Jan 5 (Reuters) - Taiwan's Foxconn,
the world's largest contract electronics maker, said on Thursday
output at its iPhone plant in China had "basically returned to
normal" and December revenue, down 12.3% year-on-year, marked
the start of a recovery.Production of Apple iPhones faced disruption ahead of
Christmas and January's Lunar New Year holidays, after curbs to
control COVID-19 prompted thousands of workers to leave
Foxconn's factory lines in China's Zhengzhou city.Although lower compared with the previous year, the company
said revenue for December was better than it expected and that a
"gradual recovery" at its Zhengzhou plant had contributed to
"double-digit growth" in revenue for its smart consumer
electronics business compared to November.A Foxconn source familiar with the matter, who could not be
named because they were not authorised to speak to the press,
said the growth in December compared to the month prior for its
consumer electronics business, including smartphones, showed
major client Apple did not cut orders.A high base from a year earlier, when demand for smartphones
revived after the early impact of the pandemic, also led to the
yearly decline in revenue, the person added.Revenue for 2022 rose 10.47% from the previous year to a
record high, driven by growth across major product lines from
smartphones to servers, the company said.In the fourth quarter, the Zhengzhou plant grappled with
strict COVID-19 restrictions, now being eased, that fuelled
discontent among workers over conditions at the factory. It was
also hit by worker unrest over pay.Foxconn has offered bonuses to attract new workers and
convince others to stay on.A company source told Reuters last month it aimed for the
plant to resume full production around late December-to-early
January.Analysts say Foxconn assembles around 70% of iPhones, and
the Zhengzhou plant produces the majority of its premium models
including iPhone 14 Pro.The company said in Thursday's statement it expects
first-quarter revenue "to be roughly in line with market
consensus," without elaborating.Analysts expect first-quarter revenue to grow by 5.6%
year-on-year, according to Refinitiv.Foxconn shares closed down 0.1%, below the broader market
which ended up 0.72%.(Reporting by Sarah Wu and Yimou Lee; Editing by Christopher
Cushing, Emelia Sithole-Matarise and Barbara Lewis)