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Hon Hai Technology Group (Foxconn), the world's biggest contract electronics manufacturer and assembler of iPhones, on Thursday reported a huge 56 per cent loss in net income (year-on-year) in the January-March period owing to sluggish consumer demand as few people are buying smartphones and other gadgets.

The net profit for the March quarter dropped to 12.8 billion Taiwanese dollars ($417.17 million) from 29.45 billion Taiwanese dollars in the first quarter last year.

Hon Hai Chairman and CEO Young Liu said in a statement that the outlook for full year 2023 overall remains flattish, "with low visibility, particularly as monetary tightening around the world, coupled with geopolitical tensions, inflation and other uncertain factors impact the economic outlook".

In the first quarter of 2023, revenue totaled 1.4624 trillion Taiwanese dollars, up 4 per cent year-on-year.

"With inventory adjustments following the growth bump from pandemic-driven demand for ICT goods and amid a traditionally off-peak season, the current quarter is expected to see declines both on an on-quarter and on-year basis," said Liu.

Among the company's primary product segments, cloud and networking products and computing products are likely to be flat quarter-on-quarter, while components and other products are likely to show quarterly growth.

In terms of partnering with traditional auto OEMs, Chairman Liu said auto brand manufacturers must face the challenges of time-to-market and time-to-cost.

This means a large part of the EV industry will actively move towards professional OEMs in the future, driving opportunities for Foxconn.

Foxconn is bullish on the India market as Apple ramps up its manufacturing and retail presence in the country.

The company has bought a huge tract of land on the outskirts of Bengaluru. According to reports, the company made the statement in this regard at London Stock Exchange.

According to the statement, the 1.2 million square metre (13 million square foot) plot has been acquired near Devanahalli located close to Bengaluru International Airport. According to sources, the land was bought for Rs 106.24 crore.

This is seen as part of the company's strategy to look for alternative production destinations away from China following rigid Covid rules, according to sources