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Foxconn’s profits drop as iPhone sales falter, but AI boom offers hope
The Taiwanese company reported a 13 per cent fall in net income, worse than analysts’ estimates for a 2 per cent gain
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Foxconn Technology Group's quarterly earnings missed estimates as weak iPhone sales in China weighed and it invested more on artificial intelligence (AI) server production.
The Taiwanese electronics contract manufacturer, a major assembler of Nvidia servers and Apple's main iPhone supplier, reported a 13 per cent fall in net income to NT$46.3 billion (US$1.4 billion). That compared with analysts’ estimates for a 2.3 per cent gain to NT$54.4 billion.
Foxconn's server manufacturing arm has expanded alongside the boom in demand for the Nvidia chips that drive AI development. However, it still derives most of its revenue from iPhones, and Apple reported a surprise decline in sales of its flagship device during the holiday quarter.
The Taiwanese firm, formally known as Hon Hai Precision Industry, in January revealed a deceleration in December-quarter sales.
While Big Tech firms from Microsoft to Amazon.com have pledged to keep spending on data centres, Chinese AI start-up DeepSeek’s rise has spurred doubts about whether all that expenditure is justified.
Foxconn, which ships electronics to the rest of the world from giant production bases in China, is also grappling with uncertainty surrounding US tariffs in 2025.
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