Foxconn, a major supplier for Apple, experienced a substantial setback in its first-quarter financial performance after reporting a staggering 56% plunge in net profit, marking its most significant quarterly decline in three years.

The actual net profit for the January-March period plummeted to T$12.8 billion ($417.17 million), a drastic drop from T$29.45 billion in the same period the previous year. This disappointing outcome was far below the average forecast of T$29.18 billion predicted by analysts.

The downturn was caused by a significant T$17.3 billion write-down associated with Foxconn's 34% stake in Sharp Corp, a Japanese electronics manufacturer. Sharp, in its own financial report, disclosed a full-year loss of $1.9 billion due to the devaluation of its panel display business and other assets.

Looking ahead, Foxconn expects overall revenues to decline in the second quarter, while maintaining a flat full-year revenue forecast. Foxconn, which currently assembles up to 70% of Apple iPhones, has in recent times been diversifying its production away from China.

The strict COVID-19 restrictions imposed in China disrupted Foxconn's iPhone manufacturing plant last year, prompting the company to seek alternative production locations in India. Also, Foxconn aims to safeguard its business from potential repercussions arising from escalating trade tensions between Beijing and Washington.

Additionally, the tech manufacturer has ventured into the electric vehicle (EV) business, with the recent acquisition of the former General Motors Co. plant in Lordstown, Ohio, USA and the recruitment of Jun Seki, a former Nissan executive, to lead its EV business expansion efforts.