The Foxconn manufacturing unit campus in Longhua city, Shenzhen, China.
South China Morning Submit | South China Morning Submit | Getty Photos
Apple provider Foxconn reported a 72% rise in first-quarter revenue, boosted by robust demand for AI servers and coming off a low base from the interval a yr earlier, however the progress was decrease than anticipated.
The Taiwanese firm, the world’s largest contract electronics maker, mentioned web revenue for the January-March quarter rose to T$22.01 billion ($679 million) from T$12.8 billion in the identical interval the earlier yr, when earnings had been hit by a T$17.3 billion writedown associated to its 34% stake in Japanese electronics maker Sharp Corp.
Whereas the revenue missed the T$29.31 billion forecast by analysts, it was Foxconn’s third consecutive quarterly revenue rise.
Within the first quarter, shopper electronics together with smartphones accounted for 48% of its income whereas cloud and networking merchandise, together with servers, contributed 28%.
Foxconn mentioned it expects income for the second quarter to develop considerably from a yr earlier, broadly in keeping with earlier steerage, with income for good laptop electronics prone to be flattish. It doesn’t present numerical steerage.
The corporate, formally known as Hon Hai Precision Business Co Ltd, mentioned in March that it anticipated a big rise in income this yr pushed by booming demand for synthetic intelligence servers.
Apple’s quarterly outcomes and forecast beat modest expectations this month, nd CEO Tim Prepare dinner mentioned income progress would return within the present quarter.
Foxconn’s shares have risen 65% to date this yr, pushed by its rosy AI outlook, far outperforming a 17% achieve for the broader market.
