Foxconn profit surges amid AI boom, but trade tensions cloud outlook
Foxconn , the world's largest contract electronics maker, posted a 91 per cent leap in first-quarter profit and beat the market forecast on strong demand for
artificial intelligence (AI) servers, but gave a more conservative full-year outlook.
Advertisement
Net profit for January-March for
Apple 's top
iPhone assembler and
Nvidia 's server maker came in at T$42.12 billion (US$1.39 billion), versus the T$37.8 billion average of 13 analyst estimates compiled by LSEG.
Foxconn, formally
Hon Hai Precision Industry , last month said January-March revenue jumped 24.2 per cent to a record for that quarter on strong sales of AI servers.
In an earnings report, Foxconn said it should see significant on-year growth in the second quarter, with high double-digit growth year on year for AI servers and an accelerating volume production ramp-up.
But for full-year revenue, it forecast significant on-year growth, downgrading the outlook from a previous prediction of strong growth. It did not elaborate and the company does not provide numerical guidance.
Advertisement
A Sino-US trade spat could dim prospects for Foxconn's outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing on Monday agreed to slash tariffs for at least 90 days.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
11 minutes ago
- South China Morning Post
HKMA, HSBC allay concerns about Hong Kong's property glut, assure city of banks' safety
Hong Kong's de facto central bank and the city's largest lender have issued separate statements to assuage concerns about a glut in the commercial property market, saying that the local banking system remained robust and well-capitalised. Advertisement Risks associated with commercial real estate (CRE) loans were 'manageable', as the classified loan ratio – a measure of borrowings deemed substandard, doubtful, or at loss – shrank slightly to 1.97 per cent in the second quarter, from 1.98 per cent at the end of March, said Eddie Yue Wai-man, the chief executive of the Hong Kong Monetary Authority (HKMA). 'Hong Kong's banking system is well-capitalised and has sufficient provisions and good financial strength to withstand market volatilities,' Yue said in a blog post on the HKMA's website on Wednesday. Hong Kong's property slump, currently in its sixth year, has entered a new normal , as a confluence of factors from high interest rates and macroeconomic pressure to low demand amid a supply glut has weighed on the market. As prices and rents fell in residential flats, shops and offices, the value of loan collateral declined. Eddie Yue Wai-man, the Chief Executive of the Hong Kong Monetary Authority (HKMA), on July 9, 2025. Photo: Elson Li Almost three-quarters of HSBC's Hong Kong commercial property loan book was flashing warning signs by the end of June, while the amount of loans bearing increased credit risk had almost tripled, according to a media report on Tuesday based on its own calculation.
South China Morning Post
41 minutes ago
- South China Morning Post
Apple eyes Douyin Pay for mainland App Store while iPhone 17 ‘leak' stirs online debate
Advertisement Launched in January 2021, Douyin Pay is a service under ByteDance -owned domestic short video platform Douyin, the Chinese sibling of TikTok . Douyin had about 766.5 million monthly active users, according to data published last month by digital marketing agency Sekkei Digital Group. The potential addition of Douyin Pay to the mainland App Store reflects the continued growth of mobile payment services in the world's second-largest economy, where Alipay and WeChat Pay dominate the vast market. ByteDance-owned Douyin had an estimated 766.5 million monthly active users on the mainland. Photo: Shutterstock Meanwhile, supposedly leaked images online of the iPhone 17 have triggered heated discussion on Chinese social media about the alleged new design. Advertisement One image of a presumed iPhone 17 Pro model showed a large horizontal camera 'island' on the back of the handset. That design was initially seen on Casetify's new iPhone 17 cases last week, when the images were mistakenly posted on the company's website. Those images were subsequently removed.
South China Morning Post
41 minutes ago
- South China Morning Post
PLA ‘warns off' US ship near Scarborough Shoal, China property woes: SCMP daily highlights
Catch up on some of SCMP's biggest China stories of the day. If you would like to see more of our reporting, please consider subscribing A US destroyer has entered disputed waters in the South China Sea, less than two days after an apparent collision involving a Chinese coastguard vessel and a PLA Navy ship while the former was pursuing a Philippine coastguard vessel in the area. Chinese scientists have boosted the speed of new hybrid crop development fivefold with a combined strategy of 'robot-friendly' gene editing and artificial intelligence-driven robotics. Illustration: Reuters China decided on Wednesday to sanction two European banks as a countermeasure against previous financial sanctions from the 27-member bloc.
