Taiwan-based Foxconn, the world’s largest contract electronics manufacturer and primary assembler of Apple’s iPhones, reiterated its anticipation of second-quarter revenue growth and announced record-breaking sales for April. In a statement, Foxconn, also known as Hon Hai Precision Industry Co Ltd (2317.TW), highlighted that the ongoing quarter typically experiences a lull, characterized by the transition between older and newer products.
However, it emphasized expectations for both sequential and year-over-year revenue growth. Despite refraining from providing specific figures, the company noted that April’s revenue hit T$510.9 billion ($15.83 billion), marking a record high for the same period and a 19% increase compared to the previous year. Notably, revenue from smart consumer electronics, particularly smartphones, saw notable year-over-year growth. Furthermore, robust demand for artificial intelligence (AI) servers contributed to significant growth in the cloud and networking products segment.
These updates precede Foxconn’s upcoming first-quarter earnings call scheduled for May 14. The company had previously reported a 9.6% year-over-year decline in first-quarter revenue to T$1.322 trillion, falling short of the T$1.401 trillion LSEG Smart Estimate. The first quarter typically experiences a slowdown following the peak demand season when Taiwanese tech firms rush to supply smartphones, tablets, and other devices for the Western holiday market.
Apple’s recent quarterly results and optimistic forecasts, as well as Foxconn’s bullish outlook for the year, reflect growing optimism amidst evolving market conditions.
