Foxconn expects big revenue jump in 2024 after slow start to the year amid booming AI demand
- Foxconn’s new estimate is rosier than previous statements about ‘conservative and neutral’ expectations for 2024
- Apple’s biggest supplier beat market estimates in the fourth quarter with US$1.69 billion in profit, but it expects a slight first-quarter revenue decline
The outlook has turned rosier since Foxconn chairman Liu Young-way said in November that the world’s largest electronics contract manufacturer had “relatively conservative and neutral” expectations for 2024.
The Taiwanese company said October-December net profit jumped 33 per cent to T$53.14 billion (US$1.69 billion) from T$40 billion in the same period the previous year, thanks to robust demand for AI servers and strong sales during the peak year-end holiday season.
The profit beat a T$43.52 billion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate.
In the fourth quarter, consumer electronics including smartphones accounted for 58 per cent of revenue, while cloud and networking products, including servers, contributed 20 per cent.
Foxconn said it expects revenue for the first quarter to slightly decline from a year earlier, with revenue for smart computer electronics also likely to drop in the period.
