Apple supplier Foxconn reiterates second-quarter revenue growth, posts record April sales

Foxconn expects its second-quarter financial results to show both quarter-on-quarter and year-on-year growth
Its April revenue reached US$15.83 billion, the highest figure on record for the same period and represented a year-on-year rise of 19 per cent

Foxconn

Reuters

Published: 5:08pm, 5 May 2024

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Taiwan’s Foxconn Technology Group, the world’s largest electronics contract manufacturer and the biggest assembler of Apple’s iPhone, reiterated on Sunday it expected a rise in second-quarter revenue, and reported record sales for the month of April.

Foxconn, formally known as Hon Hai Precision Industry, said in a statement that this year’s second quarter “remains a traditional off-peak season, and major products are entering a period of transition between old and new products”.

The company, however, added, that its “operations outlook for the second quarter is expected to show both quarter-on-quarter and year-on-year growth”.

The statement did not elaborate and the company does not give numerical guidance.

Apple supplier Foxconn Technology Group is the world’s biggest assembler of iPhones. Photo: Shutterstock

Foxconn said its April revenue reached T$510.9 billion (US$15.83 billion), which it said was the highest figure on record for the same period and represented a year-on-year rise of 19 per cent.

Revenue in its smart consumer electronics products, including smartphones, in April showed “significant growth” year on year, it said.

Artificial intelligence (AI) server demand also delivered “strong growth” year on year for its cloud computing and networking products segment, the company added.

The monthly sales data comes ahead of Foxconn’s first-quarter earnings call on May 14.

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Foxconn has previously reported that for the first quarter, revenue slid 9.6 per cent year on year to T$1.322 trillion, underperforming a T$1.401 trillion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate.

The first quarter is traditionally quieter than the previous one, the season when Taiwan’s tech companies race to supply smartphones, tablets and other electronics devices to major vendors such as Apple for Western markets’ year-end holiday period.

Apple’s quarterly results and forecast beat modest expectations on Thursday, and chief executive Tim Cook said revenue growth would return in the current quarter.

In March, Foxconn adopted a far more bullish outlook for this year, saying on its fourth-quarter earnings call that it expected a significant rise in revenue driven by booming demand for AI servers.

Foxconn’s shares have surged almost 50 per cent so far this year, compared with a 13 per cent gain for the broader market. Its shares closed up 1.3 per cent on Friday.

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