Foxconn Reports Profit Decline as AI Server Growth Outpaces Weak iPhone Sales
The electronics giant forecasts strong first-quarter revenue driven by booming AI demand, despite challenges in consumer electronics and global trade tensions.
- Foxconn's Q4 profit fell 13% to NT$46.33 billion, missing analyst expectations due to weak consumer electronics performance, particularly iPhone sales.
- AI server revenue grew significantly, with a 150% increase in 2024, and is expected to more than double year-over-year in Q1 2025.
- The company forecasts strong Q1 revenue, driven by continued demand for AI infrastructure and Nvidia server production, with no signs of a slowdown in cloud service provider investments.
- Foxconn is expanding its global production footprint, including a $900 million AI server plant in Mexico and a new Apple server facility in Houston to mitigate trade tensions and tariffs.
- Despite challenges from U.S. trade policies and reliance on iPhone revenue, Foxconn remains optimistic about its AI-driven growth strategy and future collaborations with Apple.
South China Morning Post 
The Globe and Mail 
Sherwood News 
