Apple supplier Foxconn forecast on Friday that a global chip shortage would run into the second half of 2022 and its fourth-quarter revenue for electronics, including smartphones, would fall more than 15%.

Chairman Liu Young-way said during a conference call that Foxconn was cautious about its 2022 revenue outlook, citing uncertainties surrounding the coronavirus pandemic, inflation, geopolitical tensions and supply chains.

"If not for supply shortages prospects for the fourth quarter could have been better," he said, adding that supply of power management chips remained tight and a global chip crunch could last longer than his previous forecast of second quarter.

A year-long shortage of chips, initially due to sky-rocketing demand for smartphones and personal gadgets during the pandemic, spilled into the auto industry and disrupted production at companies ranging from Apple to GM.

As well as forecasting the slide in revenue in its consumer electronics business, which includes smartphones, Foxconn said it expected overall fourth-quarter revenue to fall between 3% and 15% in the period. Analysts predicted an 11% drop, according to a Refinitiv consensus estimate.

Analysts had said they expected robust iPhone sales boosted Foxconn's business in the third quarter, and the company secured more than 75% 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. Read more from Reuters via MarketScreener.  

For Q3, BNN Bloomberg reports that assembler Hon Hai Precision Industry Co. (Foxconn) posted earnings that topped analysts’ estimates, boosted by robust demand for new handsets from its largest customer Apple Inc.

Net income for the third quarter ending in September was NT$37 billion ($1.3 billion), the Taiwanese company said Friday in a statement. Analysts had estimated NT$32.4 billion on average. Sales for the period reached a record NT$1.4 trillion based on previously reported numbers.

The report further noted that Foxconn has been working hard to cut its reliance on Apple’s gadget assembly orders. It is trying to branch out to the emerging electric vehicle market, although Liu has said the automotive business will not begin to make meaningful contribution to the company’s revenue before 2023.