Foxconn profit jumps as iPhone maker banks on AI server revenue for growth

By Steve Goldstein

Hon Hai Precision Industries, better known as Foxconn, said its fourth-quarter profit jumped 33% despite revenue going down.

The maker of iPhones (TW:2317) said its profit rose to 53.15 billion New Taiwan dollars ($1.69 billion), while revenue fell 6% to NT$1.85 trillion dollars.

Analysts polled by Visible Alpha expected a profit of NT$43.82 billion, while revenue was in line.

Its operating margin improved, rising 39 basis points to 2.64%.

In a slide presentation, Foxconn gave a vertical arrow to describe its 2024 outlook on cloud and networking products, and a horizontal one for smart consumer electronics products, the unit that makes the iPhones for Apple. It said 30% of its server revenue came from artificial intelligence-geared products.

Shares of Hon Hai have gained 16% year to date.

-Steve Goldstein

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03-14-24 0326ET

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