Foxconn Chairman Young Liu delivers a speech during the Hon Hai Tech Day in Taipei on Oct. 18, 2023.
I-hwa Cheng | AFP | Getty Images
Foxconn, the world’s largest contract electronics maker, reported Wednesday that its third-quarter profit jumped 17% from a year earlier.
Here’s how Foxconn did in the September quarter compared with LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate:
- Revenue: $2.06 trillion New Taiwan dollars ($66.29 billion) vs. NT$2.06 trillion expected
- Net profit: NT$57.67 billion vs. NT$50.41 billion
Foxconn, formally known as Hon Hai Precision Industry, is best known as the world’s largest manufacturer of Apple‘s iPhones, but has been shifting into other business avenues, including AI.
The firm manufactures server racks designed for AI workloads and has become a key partner to American AI chip darling Nvidia.
Foxconn’s server manufacturing business is currently in a strong growth phase, underpinned by robust demand, Ivan Lam, a senior analyst at Counterpoint Research, told CNBC.
The company is leveraging its dominance in contract manufacturing to secure both current and future orders, Lam said, describing it as a clear case of “follow the cash” — a strategy that naturally involves sacrificing some consumer electronics orders.
He added that Foxconn’s pivot toward high-growth server manufacturing “is clearly paying off,” even as it trades parts of its consumer electronics footprint for longer-term momentum.
While component price volatility, currency swings, and logistics challenges can pressure margins, Lam said he expects Foxconn’s fourth-quarter results to “remain favorable.”
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