Apple’s major assembler Hon Hai Precision Industry Co., also known as Foxconn witnessed a revenue rise of 33% in the month of August, accelerating from the month prior. With Nvidia Corp.’s AI accelerators in its servers, Foxconn’s topline has begun to recover from a protracted smartphone slump. The company reported last month that it expects revenue to grow throughout the rest of the year and shall reverse the successive quarterly declines.
The company’s shares are up close to 70% in 2024. The company reported sales of NT$548.3 billion which is approximately US $17.1 billion. These sales were reported in August itself, and a new record was created. In July, growth was 22%.
Hon Hai has set itself the goal of securing 40% of the global AI server market. To achieve this, the company is leveraging its extensive relationships with leading global tech giants, as well as its renowned manufacturing expertise. By capitalizing on its well-established position as a key assembler for major technology firms, Foxconn aims to play a significant role in the rapidly growing AI sector. Its deep manufacturing capabilities and experience in large-scale production provide a strong foundation for competing in the AI server space, positioning the company to meet the rising demand for advanced computing infrastructure.
This strategic goal highlights Hon Hai’s broader efforts to diversify beyond traditional consumer electronics and further strengthen its influence in cutting-edge technologies like artificial intelligence. Besides the demand for consumer electronics, Taiwanese companies may also benefit from AI enhancements and features, which could encourage mobile users to upgrade their devices.
IPhone shipments in China have rebounded in recent months, and the global smartphone market is recovering. Apple is preparing to unveil the iPhone 16 next week. The company said in a statement “Entering the peak season in the second half of the year, we anticipate our operation to gradually gain momentum”.
