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Taiwanese Foxconn announces record-breaking 3rd-Q revenue

Apple's biggest iPhone assembler, Foxconn, has reported its highest-ever quarterly revenue, fueled by strong demand for AI servers

AP

The company's strong performance exceeded market expectations and reflects the robust demand for AI servers. / Photo: AP

Taiwan's Foxconn, the world's largest contract electronics maker, beat expectations to post its highest-ever revenue for the third quarter on strong demand for artificial intelligence (AI) servers.

Revenue for Apple's biggest iPhone assembler jumped 20.2 percent year on year to $57.3 billion.

"The result exceeded the company's original expectations of significant growth," Foxconn said in a statement on Saturday.

It was also ahead of a $55 billion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate.

Strong AI server demand led to robust revenue growth for its cloud and networking products division, said Foxconn whose customers include AI chip firm Nvidia.

For smart consumer electronics, which includes iPhones, there was a strong quarter-on-quarter growth thanks to new product launches, but its year-on-year performance was flat.

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Over 10 percent rise in revenue

The third quarter is traditionally when Taiwan's tech companies start racing to supply smartphones, tablets and other electronics to major vendors such as Apple for Western markets' year-end holiday period.

Total revenue in September alone reached $22.7 billion, up 10.9 percent year on year and the second-highest ever level for the month.

"Entering the peak season in the second half of the year, we anticipate our operation to gradually gain momentum," Foxconn said of its outlook for the current quarter.

"The fourth quarter is expected to be roughly in line with current market expectations," it added, without elaborating.

The company does not provide numerical forecasts.

Foxconn's shares have jumped 86 percent so far this year, outperforming by far a 24 percent rise for the broader Taiwan market. They closed up 3.7 percent on Friday ahead of the revenue data release, bucking a 0.4 percent fall on the benchmark index.

The company will report its full third-quarter earnings on Nov. 14. It has scheduled its annual Tech Day on Oct. 8-9, an event where Foxconn normally announces new products or partnerships.