Foxconn’s quarterly profit increased by 33% – Kommersant
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Net profit of the main supplier of components for Apple – Hon Hai Precision Industry (trade name – Foxconn) in the fourth quarter grew by 33%, amounting to 53.1 billion Taiwan dollars ($1.7 billion). The result was significantly better than analysts’ forecasts and became the most significant quarterly growth since the beginning of 2021. Revenue in the fourth quarter fell 6% to NT$1.9 trillion ($60.3 billion). For 2023 as a whole, Foxconn’s net profit increased by 0.4%, amounting to 142.1 billion Taiwan dollars ($4.5 billion). Revenue for the year decreased by 7%, to $6.2 trillion Taiwan dollars ($196.7 billion).
Foxconn also announced optimistic expectations for 2024, compared to its previous forecasts that were more conservative. The strong outlook is driven primarily by rising demand for AI servers—Foxconn expects demand for them to grow 30% annually from 2023 to 2025, and growth in the company’s related business to be at or above the same level. Foxconn also forecasts better-than-previously expected growth in demand for networking and cloud equipment and smart consumer electronics. Overall, the consumer electronics division’s performance is likely to remain flat through 2023 due to continued rather weak demand.
Other companies are also improving as demand for AI-related products soars. Yes, Nvidia increased annual profit almost seven times thanks to interest in AI chips.
Previously, the Chinese authorities initiated investigation regarding a Taiwanese company. The formal reason for it was suspicions of tax fraud and doubts about the fair use of land.
Read more about the Chinese authorities’ investigation into Foxconn in the material “Second Chinese Warning”.
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