Foxconn's Q2 revenue jumps almost 16%: What's the reason?
What's the story
Foxconn, the world's biggest contract electronics manufacturer and Apple's biggest iPhone assembler, has reported a record revenue for the second quarter of this year. The company's revenue jumped by an impressive 15.82% year-on-year to T$1.797 trillion (approximately $58 billion). The growth was largely driven by strong demand for artificial intelligence (AI) products and services, including those from NVIDIA, a major client of Foxconn.
Revenue breakdown
Foxconn's June revenue hits record high
The strong demand for AI has significantly boosted Foxconn's cloud and networking products division. However, the company's smart consumer electronics segment, which includes iPhones, witnessed "flattish" year-on-year revenue growth due to exchange rate fluctuations. Despite these challenges, Foxconn's June revenue hit a record high for that month at T$540.237 billion (approximately $17 billion), reflecting a 10.09% increase year-on-year.
Future outlook
Company expects business to grow in Q3
Looking ahead, Foxconn expects its business to grow in the third quarter compared to both the previous quarter and the same period last year. However, the company has also warned of potential risks to this growth. "The impact of evolving global political and economic conditions and exchange rate changes will need continued close monitoring," Foxconn said in a statement.
Stock performance
Stock down by 12.5% this year
Despite a stellar 76% surge in its shares last year, Foxconn's stock has taken a hit this year. It is down by 12.5% so far, owing to wider pressure on tech stocks due to US President Donald Trump's trade policies.