Foxconn, one of the world’s leading tech makers and a partner of the likes of Apple, said on Wednesday it plans to increase investment outside China and efforts to lure automakers into its contract manufacturing business as it forecasts a lower demand throughout this year.

Responsible for 70% of iPhones producedthe company has been diversifying its production in China after the problems posed by the Covid-19 restrictions last year, in addition to being concerned about the country’s growing tension with the US government.

The company reported a 10% drop in fourth-quarter profit from a year earlier. Foxconn expects stable revenue in the first quarter and through the year, with a negative demand curve.

“We maintain a relatively cautious view on smart consumer electronics and think it may ease slightly,” said Foxconn chairman Liu Young-way Liu, pointing to last year’s good performance, inflation and the economic slowdown. as responsible factors.

In the fourth quarter, the manufacturer’s net profit fell to US$ 1.31 billion, compared to the previous US$ 1.44 billion.

This decline in the recent quarter comes after Foxconn faced protests following a COVID-19 outbreak in November 2022, which impacted the manufacturer’s profit and also Apple, which recorded a drop in revenue in what is often its best quarter.

Foxconn’s view for the year also aligns with Apple’s, as the company predicts a drop in revenue for the second consecutive quarter. It remains to be seen how the mixed reality headset will impact the company’s earnings, considering it shouldn’t be a year of major updates and launches in Apple’s other more popular sectors.