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Apple supplier Foxconn misses March quarter estimates amid iPhone sales downturn in China
- Foxconn reported a net profit of US$679 million in the first quarter, which missed analysts’ average estimate of US$897 million
- Demand for iPhones in mainland China fell about 27 per cent in the first three months of this year, according to official government data
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Foxconn Technology Group reported weaker-than-expected profit in the March quarter, as demand for Apple’s iPhones remained sluggish in mainland China, though it projected significant growth in the current quarter.
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The Taiwanese company, formally known as Hon Hai Precision Industry, gave that forecast after reporting its strongest monthly sales since the start of 2023, buoyed by rising demand for servers during the artificial intelligence (AI) boom.
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
Foxconn, however, is getting a boost from big investments into AI infrastructure such as data centres. Company executives maintained the 40 per cent growth outlook for the AI server business this year.
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