Foxconn’s Q4 profit surges 33% driven by strong AI demand

Foxconn Q4 profit: Foxconn, a key supplier for Apple, announced a 33 per cent surge in fourth-quarter profit, surpassing expectations, driven by robust demand for AI servers and strong sales during the peak holiday season.

The world's largest contract electronics manufacturer anticipates a sluggish start to 2024 but foresees a strong revenue uptick by the year's end. For the October-December period, net profit climbed to T$53.14 billion ($1.69 billion), compared to T$40 billion in the same quarter the previous year, exceeding the T$43.52 billion LSEG SmartEstimate.

Consumer electronics, particularly smartphones, contributed 58 per cent of revenue in the fourth quarter, while cloud and networking products, including servers, made up 20 per cent. Foxconn expects a slight decline in first-quarter revenue compared to the previous year, with a similar trend anticipated for smart computer electronics.

Despite a projected slow start in the first quarter, the company, also known as Hon Hai Precision Industry Co Ltd, anticipates significant year-on-year revenue growth for 2024. This announcement follows Apple's recent report of sales and profit that surpassed Wall Street expectations, primarily driven by iPhone growth, although sales in China fell short of analyst forecasts.

(With Reuters inputs)