The world’s largest contract electronics manufacturer, Foxconn said on Sunday that its revenue for the month of February fell 11.65% YoY over weakness in smart consumer electronics even though it believes its Q1 will still be good enough.

According to reports, the company’s revenue last month reached its second-highest for February at T$402 billion (US$13.18 billion) while operations returns to normal after the chaotic COVID lockdown at the Zhengzhou campus in China.

It’s worth noting that this is the center for iPhone production and the company is the major manufacturer of iPhones in China.

Production of the device faced enormous disruption ahead of Christmas last year and the January Lunar New Year holidays as the Chinese government move to clamp down on COVID-19 which led to a massive protest at Foxconn’s factory.

Speaking of revenues, Foxconn’s revenue dropped 39.12% relative to the previous month even though its cumulative sales for the first two months saw a 17.94% increase due to a strong operation after the Zhengzhou factory went back into operation.

For smart consumer electronics products, which includes smartphones, revenue in February fell year-on-year “due to conservative customers’ pull-in”, it said, without giving details.

For the record, the company assembles over 70% of iPhones and its Zhengzhou plant produces the majority of the newest iPhone 14 Pro devices.

“Based on the revenue performance in the first two months, the outlook for first quarter 2023 is roughly in line with market expectation,” Foxconn said without elaborating.

Q1’s revenue is still expected to grow by 4% YoY according to Refinitiv, an analytic firm familiar with the company.

The effect of the previous downtime will reportedly affect Apple’s revenue according to the company’s forecast even though the sales of the iPhones were likely to improve as production is back to normal in China as the Zero-COVID policy eases.