Hon Hai Precision Industry Co.’s February sales fell 11.7% from a year earlier, despite a boost for the iPhone assembler from China’s reopening.

The Apple Inc. supplier, also known as Foxconn, said monthly revenue dropped to $13 billion last month. Still, the first-quarter outlook is “roughly in line with market expectation,” based on sales figures in the last two months, Hon Hai said in a statement Sunday. 

Lunar new year holidays in China occurred in January this year, while in 2022, they took place in February.

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Output at the Taiwanese company’s vast iPhone assembly complex in the Chinese city of Zhengzhou largely resumed normal operations in January, following disruptions from a Covid outbreak. Attention is on how the popularity of iPhones holds up, with overall smartphone demand faltering worldwide. 

Hon Hai plans to invest about $700 million on a new plant in India to ramp up production there, as more manufacturers shift away from China to reduce the potential fallout from growing Washington-Beijing tensions. 

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