Despite the geopolitical and macroeconomic factors affecting the demand for consumer electronics, Foxconn has maintained a positive outlook due to robust sales increases in its AI server business. The company has also been expanding into contract electric vehicle manufacturing, although it has delayed its target of a 5% share in the global EV market by 2025 due to slowing demand. Foxconn's net profit for the July-September period was USD 49.3 billion, marking a fifth quarter of profit growth.
Key takeaways:
- Foxconn, the world's largest contract electronics maker, is diversifying its supply chain and expanding production in countries like India, the United States, Mexico, and Vietnam amid U.S.-China trade tensions.
- The company expects a significant growth in its artificial intelligence server business next year, which is forecasted to account for 50% of its total server revenue.
- Foxconn is also expanding into contract electric vehicle manufacturing, but has delayed its target of a 5% share in the global EV market by 2025 due to slowing demand.
- The company reported a net profit of USD 49.3 billion for the July-September period, marking a fifth quarter of profit growth, largely driven by strong sales of AI servers.