Taipei — Taiwan’s Foxconn, the world’s largest contract electronics maker, posted its highest first-quarter income on sturdy demand for AI merchandise however stated it will have to carefully watch world politics.
Income for Apple’s greatest iPhone assembler jumped 24.2% yr on yr to T$1.64-trillion ($49.5bn), Foxconn stated in an announcement on Saturday, simply lacking the T$1.68-trillion LSEG SmartEstimate, which provides better weight to forecasts from analysts who’re extra persistently correct.
Sturdy AI demand led to sturdy income progress for its cloud and networking merchandise division, stated Foxconn, whose prospects embody AI chip agency Nvidia.
For sensible client electronics, which incorporates iPhones, there was “flattish” year-on-year progress, it stated.
March income rose 23.4% yr on yr to T$552.1bn, a March document.
Foxconn stated it expects progress this quarter from the earlier three months and from the identical interval final yr however warned: “The influence of evolving world political and financial situations will want continued shut monitoring.”
It didn’t elaborate.
US President Donald Trump this week slapped extra 34% tariffs on Chinese language items, bringing the overall new levies this yr to 54% on the nation. The Chinese language metropolis of Zhengzhou is residence to the world’s largest iPhone manufacturing facility, operated by Foxconn.
Trump additionally put a 32% tariff on Taiwan, although the majority of Foxconn’s factories are situated abroad.
The corporate, formally known as Hon Hai Precision Trade, doesn’t present numerical forecasts. It studies full first quarter earnings on Could 14.
Foxconn’s shares jumped 76% final yr, far outperforming the 28.5% rise for the Taiwan market, however are down 17% to this point this yr, mirroring broader stress on tech shares rattled by Trump’s tumultuous commerce coverage.
The inventory closed up 1% on Wednesday forward of the income information launch, in contrast with a 0.1% achieve for the benchmark index. Taiwan’s monetary markets had been closed on Thursday and Friday for a vacation.
Reuters
