Apple supplier Foxconn beat expectations on Wednesday, reporting a 6% jump in quarterly profit. This surge was fueled by a booming demand for AI servers. In addition, Foxconn maintained its full-year forecast, predicting significant revenue growth throughout 2024.
The Taiwanese company said net profit for the April-June quarter rose to T$35.05 billion ($1.09 billion) from T$33 billion in the same period the previous year. Analysts’ average estimate was set at T$34.29 billion.
Yimou Lee and Faith Hung for Reuters:
“If the schedule remains unchanged, the performance of the entire AI server segment may be better than originally estimated,” Foxconn vice president and spokesman James Wu said.
Wu emphasized Foxconn’s leading position in the AI server market, which he said accounted for than 40% of the global market share, adding its capacity and technology would not be easily challenged by competitors.
On the full-year outlook for its smartphone business, Foxconn said it remained “flattish” due to a higher base in the first half of last year, adding that the outlook for the second half of this year is better than the corresponding period in 2023.
Formally called Hon Hai Precision Industry Co Ltd, Foxconn has expected its operations to pick up gradually in the second half as many electronics vendors, including Apple, usually release new products ahead of the year-end holiday season.
Prior to the earnings announcement, Taipei-based KGI Securities revised up its sales forecast for Foxconn this year, saying strong demand for new iPhones and AI servers could support a better-than-expected outlook in the second half.
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