The world’s largest electronics contract manufacturer reported a net profit of NT$22 billion (US$679 million) in the first quarter. While that was up more than 70 per cent, it missed analysts’ average estimate of NT$29.1 billion.
The miss reflects in part the heightened expectations around AI that helped propel Foxconn’s shares more than 60 per cent higher this year.
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Apple supplier Foxconn to build ‘AI factories’ using US hardware leader Nvidia’s chips and software
Apple supplier Foxconn to build ‘AI factories’ using US hardware leader Nvidia’s chips and software
Investors hope booming AI demand could help the world’s largest iPhone assembler diversify its business away from Apple, which still accounts for more than half of Foxconn’s sales.
Foxconn also indicated strong demand for cloud computing and networking products during the current quarter in presentation materials released before its earnings call. But revenue from consumer electronics should remain broadly flat.
Demand for iPhones in mainland China fell about 27 per cent in the first three months of this year, according to official government data, even though Apple said its iPhone business grew in the world’s second-largest economy.