Taiwan’s Foxconn, which assembles iPhones for Apple, reported a better-than-expected third-quarter profit on Friday, helped by strong smartphone demand as people continue to work remotely through the coronavirus pandemic.

But Foxconn, the world’s largest contract electronics maker, said it expects fourth-quarter revenue in its key consumer electronics business, which includes smartphones, to slump more than 15 percent from a year earlier, without offering a reason. It forecast overall revenue to fall between 3 percent and 15 percent.

Foxconn previously said it felt only a small impact from the year-long global chip shortage but had cautioned that rising COVID-19 cases in Asia could hurt its supply chain.

Third-quarter revenue rose 9 percent on the year, Foxconn said, reporting July-September net profit climbed 20 percent from a year ago to TWD 36.98 billion (roughly Rs. 10,668 crore). That was above a Refinitiv consensus estimate of TWD 31.73 billion (roughly Rs. 8,492 crore).

Analysts had said they expected robust iPhone sales boosted Foxconn’s business in the third quarter, and the company secured more than 75 percent of assembly orders, including those for the latest iPhone 13. But they cautioned that supply chain problems could mute any further near-term increase in orders at Foxconn.

Apple said last month that supply chain woes cost the company $6 billion (roughly Rs. 44,673 crore) in sales during the July-September quarter, and that the impact would worsen during the year-end holiday period.

“In the short term, Hon Hai’s iPhone 13 shipments will continue to be affected by the chipset shortage, something that Tim Cook also confirmed” on an Apple earnings call, Fubon Research wrote in a note dated November 8.

© Thomson Reuters 2021