Foxconn’s profits drop as iPhone sales falter, but AI boom offers hope
<p><strong>Hon Hai Precision Industry (Foxconn) reported lower-than-expected quarterly earnings due to weak iPhone sales in China and increased investments in AI server production.</strong> The Taiwanese company's net income fell by 13% to NT$46.3 billion (US$1.4 billion), missing analysts' estimates of NT$54.4 billion.</p> <p>While Hon Hai's server manufacturing arm is expanding due to high demand for Nvidia chips used in AI development, a significant portion of its revenue still comes from iPhone assembly. Apple's reported decline in iPhone sales during the holiday quarter, coupled with uncertainties surrounding potential US tariffs in 2025 and doubts about the justification of AI-related expenditures, contributed to the disappointing results.</p>
via SCMP Full Text Feed
<p><strong>Hon Hai Precision Industry (Foxconn) reported lower-than-expected quarterly earnings due to weak iPhone sales in China and increased investments in AI server production.</strong> The Taiwanese company's net income fell by 13% to NT$46.3 billion (US$1.4 billion), missing analysts' estimates of NT$54.4 billion.</p> <p>While Hon Hai's server manufacturing arm is expanding due to high demand for Nvidia chips used in AI development, a significant portion of its revenue still comes from iPhone assembly. Apple's reported decline in iPhone sales during the holiday quarter, coupled with uncertainties surrounding potential US tariffs in 2025 and doubts about the justification of AI-related expenditures, contributed to the disappointing results.</p>
via SCMP Full Text Feed
