Foxconn anticipates revenue growth despite off-peak season

Taiwan's Foxconn, the world's largest contract electronics manufacturer and a key assembler of Apple's iPhone, has reported record sales for the month of April. The company expects a rise in second-quarter revenue despite the traditional off-peak season and the transition between old and new products.

In April, Foxconn's revenue reached T$510.9 billion ($15.83 billion), marking a 19% year-on-year increase and the highest figure for the same period. The growth was driven by strong performance in smart consumer electronics, particularly smartphones, and increased demand for AI servers in the cloud and networking products segment.

Looking ahead, Foxconn anticipates growth in both quarter-on-quarter and year-on-year revenue for the second quarter. The company's optimistic outlook follows a challenging first quarter, where revenue declined by 9.6% year-on-year to T$1.322 trillion.

Despite the first-quarter setback, Foxconn remains bullish about the rest of the year, citing booming demand for AI servers as a key driver of revenue growth. The company's shares have surged nearly 50% this year, outperforming the broader market.

Apple's recent quarterly results and positive forecast have also contributed to Foxconn's optimism, with CEO Tim Cook indicating a return to revenue growth in the current quarter. The upcoming first-quarter earnings call on May 14 will provide further insights into Foxconn's financial performance and strategic direction.