Taiwan’s Foxconn reported record monthly sales in April. The world’s biggest assembler of Apple’s iPhones reported a 19 per cent increase in monthly revenue to approximately A$23.88 billion, compared with A$20.06 billion in April 2023.
While it is the world’s largest contract electronics maker, it is also increasingly focusing on building datacenter server racks and other equipment for artificial intelligence clusters.
However, Apple’s business still comprises more than half of its revenue. Its performance, therefore, is also an indicator of that of iPhone sales.
Earlier this month, Apple reported a 4.3 per cent decline in revenues with a slump in demand for iPhones impacting sales. The revenue decline was fuelled by a 10 per cent fall in year-over-year iPhone sales for the quarter. In China, sales are down nearly 20 per cent according to new research.
In March this year, Foxconn said that it expected a significant rise in revenue driven by booming demand for artificial intelligence servers.
That followed a forecast-beating 33 per cent jump in net profit for the fourth quarter.
The AI server market was likely to see 30 per cent growth each year between 2023 and 2025.
Last year, China launched a tax probe into Foxconn’s operations in China, though the move came at about the time that its founder Terry Gou, who stepped down as company chief in 2019, announced his now unsuccessful bid to become Taiwan’s president and also Foxconn’s plans to expand its production operations beyond China.
