Foxconn, a key supplier for Apple, recently reported a 33% increase in fourth-quarter profit, surpassing expectations. The surge in profit was attributed to the high demand for AI servers and robust sales during the holiday season. The company’s net profit for the October-December quarter reached T$53.14 billion, up from T$40 billion in the same period the previous year. This exceeded the SmartEstimate of T$43.52 billion, which reflects forecasts from consistently accurate analysts.
During the fourth quarter, consumer electronics such as smartphones contributed to 58% of Foxconn’s revenue, while cloud and networking products, including servers, made up 20% of the total revenue. Looking ahead, the company anticipates a slight decline in revenue for the first quarter of the year, with a drop expected in smart computer electronics revenue as well. Despite the slow start to 2024, Foxconn foresees a significant year-on-year revenue growth by the end of the year.
In contrast to Foxconn’s positive performance, Apple recently reported sales and profit figures that surpassed Wall Street estimates. The growth in Apple’s iPhone business was a significant contributor to its success, although its sales in China fell short of analysts’ expectations.
Overall, Foxconn’s strong showing in the fourth quarter reflects the company’s ability to capitalize on the rising demand for AI servers and consumer electronics. Despite projecting a slow start to 2024, Foxconn remains optimistic about the year’s revenue growth potential. As a key player in the electronics manufacturing industry, Foxconn’s performance will continue to be closely monitored in the coming quarters.