Foxconn, the renowned contract electronics manufacturer and primary assembler of Apple’s iPhones, is poised for a significant rise in second-quarter revenue, buoyed by record-breaking April sales.
In a statement released on Sunday, Foxconn acknowledged the second quarter’s status as a traditional off-peak season, typically characterized by transitions between old and new product cycles.
Despite this norm, the company remains optimistic, projecting growth both quarter-on-quarter and year-on-year.
While refraining from providing specific numerical guidance, Foxconn disclosed that April’s revenue reached a staggering T$510.9 billion ($15.83 billion), marking the highest figure recorded for the same period and representing a substantial 19 percent year-on-year increase.
This surge in revenue was primarily attributed to robust growth in smart consumer electronics products, particularly smartphones, and a notable uptick in demand for artificial intelligence (AI) servers within its cloud and networking products segment.
Foxconn’s optimistic outlook comes ahead of its first-quarter earnings call scheduled for May 14. In its previous quarterly report, the company reported a 9.6 percent year-on-year decline in revenue for the first quarter, which is typically quieter following the year-end holiday season.
Despite this setback, Foxconn remains bullish about its prospects for the year, buoyed by projections of significant revenue growth driven by robust demand for AI servers.
This optimism aligns with Apple’s recent quarterly results, which surpassed modest expectations. CEO Tim Cook expressed confidence in the revenue growth that will return in the current quarter.
Investors have responded positively to Foxconn’s upbeat outlook, with the company’s shares surging by almost 50 percent year-to-date, outpacing the broader market’s gain of 13 percent.
