Apple’s (AAPL) key iPhone assembler Foxconn posted better-than-expected quarterly revenue on Friday, driven by strong demand for AI servers and forecasted continued growth for the current quarter.
Foxconn, officially known as Hon Hai Precision Industry Co Ltd, announced that its revenue last month reached T$490.7 billion ($15.12 billion), a 16.1% increase year-on-year and the second-highest level for this period.
For the second quarter, revenue surged 19.1% year-on-year to T$1.55 trillion, surpassing the T$1.51 trillion forecast by LSEG SmartEstimate, which prioritizes predictions from consistently accurate analysts. This also marked a record high for the same period.
The company’s shares climbed 2% in Taiwan.
The company attributed the strong second-quarter performance in its cloud and networking products segment to robust AI server demand, noting substantial year-on-year and quarter-on-quarter growth. However, revenue from smart consumer electronics, including smartphones, remained flat compared to the previous year, with no further explanation provided.
Looking ahead, Foxconn expects revenue in the third quarter to increase both year-on-year and compared to the previous quarter.
"Entering the peak season of the second half of the year, we anticipate our operation to gradually gain momentum," the company stated.
The third quarter traditionally marks the beginning of the busy season for Taiwan's tech companies as they ramp up production of smartphones, tablets, and other electronics for major vendors like Apple (NASDAQ:AAPL), targeting the year-end holiday season in Western markets.