Taiwan’s Foxconn, the world’s largest contract electronics maker and the biggest assembler of Apple’s iPhone, is expecting a rise in second-quarter revenue. The company reported record sales for the month of April, with revenue reaching T$510.9 billion ($15.83 billion), representing a 19% year-on-year increase.
In a statement, Foxconn mentioned that the second quarter is typically an off-peak season, with major products transitioning between old and new models. Despite this, the company anticipates growth in both quarter-on-quarter and year-on-year performance.
The strong performance in April was driven by significant growth in smart consumer electronics products, particularly smartphones. Additionally, there was strong demand for artificial intelligence (AI) servers in the cloud and networking products segment.
Foxconn’s first-quarter earnings call is scheduled for May 14, where the company will provide further insights into its financial performance. In the first quarter, revenue declined by 9.6% year-on-year to T$1.322 trillion, falling short of market expectations.
Looking ahead, Foxconn remains optimistic about the rest of the year, especially with the expected increase in revenue driven by the demand for AI servers. The company’s shares have already surged by almost 50% this year, outperforming the broader market.
With Apple also reporting positive quarterly results and forecasting revenue growth in the current quarter, the outlook for Foxconn and its key products looks promising. Investors will be closely watching Foxconn’s performance in the coming months as the company continues to capitalize on the growing demand for its products.