Key iPhone assembler Foxconn has delivered record first-quarter revenue, but faces headwinds as production is impacted by the lockdowns in Shanghai.

The Taiwan-based company delivered NT$1.4 trillion (A$48.8 billion) in revenue for the March quarter, up 4.5 per cent from the previous year, and a record for the company.

But the recent Shanghai lockdowns led to a 2.8 per cent drop in April revenue, with the company Chairman expecting current-quarter revenue to be flat.

The company has been able to continue some production in the region by workers operating in a closed loop system – a costly and intense procedure.

“It is indeed a great challenge,” Foxconn Chairman Young Liu said on an earnings call..

“We have spent a lot of effort arranging workers’ food and accommodation and communicating with local governments.

“Currently, our important manufacturing complexes are operating normally through closed-loop management. Only a few, smaller factories are affected.”

Foxconn also has to deal with inflation, and the geopolitical tensions. Nevertheless it expects similar results to last year.

“We already saw inflation having an impact on lower-income households that affected the sales of lower-end products,” Liu said.

“Our products are mostly mid- to high-end and haven’t been affected yet, but we will closely watch the situation.”