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As it expands its EV push, iPhone manufacturer Hon Hai anticipates flat 2023.

Despite lower consumer spending on technology, Hon Hai Precision Industries Co. said it expects to increase sales of electric car components this year.

The Taiwanese Apple Inc. assembler predicted that sales of PCs, cloud and networking devices, and especially EV hardware, which it expects to increase by up to fivefold this year, will increase this year, offsetting a decline in consumer electronics demand. The current quarter is in line with the general outlook for 2023, which is neutral.

Along with additional worldwide expansion in India, Vietnam, Thailand, and Mexico, Hon Hai will produce EV battery packs in Ohio and Wisconsin when its capacity in the US is increased.

Apple and other brands have struggled with tepid consumer spending during a post-pandemic economic downturn, which threatens Foxconn’s already thin margins. The SVB fiasco has also fanned fears of systemic financial risk, further clouding the outlook for the global economy.

Beyond Apple’s range of smartphones and Mac computers, Foxconn assembles high-end electronics for large and small customers and is vulnerable to slumps in consumer or enterprise demand. Demand for the iPhone has already slipped, with Foxconn reporting February sales were 12% lower this year.

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Foxconn is accelerating an expansion into India with a $700 million plant in Karnataka in the works. India is one of the few remaining growth markets for smartphones and Prime Minister Narendra Modi has put in place incentives to bring more high-tech manufacturing within its borders.