Apple assembler Foxconn, the world’s biggest contract electronics maker, beat estimates for second-quarter earnings. The company posted net income of NT$33 billion ($1.03 billion), down 1% from the same quarter last year but above consensus estimates of NT$25.57 billion ($0.8 billion). Revenue totaled NT$1.3045 trillion ($40.81 billion), down 14% from the year-ago quarter.
Mack Wilowski for Investopedia:
Foxconn has invested heavily in AI, and earlier this month secured a deal to exclusively supply Apple’s AI servers from a factory in Vietnam. The company has established a wide lead in the global AI race and accounts for 40% of the global AI server market. Foxconn provides AI services for prominent tech companies such as Apple, Nvidia, Google-parent Alphabet, and OpenAI, the creator of ChatGPT.
Foxconn is Apple’s biggest supplier of parts and electronics, supplying the circuit boards and electrical equipment that makes the tech giant’s flagship products—everything from iPhones to Mac computers.
Not only does Foxconn assemble Apple products, it also supplies the tech giant’s data center servers that power AI applications. As Apple’s demand for AI increases, its partnership with Foxconn could become even more valuable.
MacDailyNews Note: Foxconn did also lower its full-year outlook, citing geopolitical tension, monetary tightening, and inflation as headwinds to growth. It now forecasts a slight full-year earnings decline, revised from previous a flat YoY estimate.
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