Hon Hai Posts Strong Sales Boost Fueled by AI and iPhones

Hon Hai Precision Industry Co., widely known as Foxconn, reported a 15.8% increase in quarterly sales, supported by strong demand for AI servers and Apple iPhones. Revenue for the three months ending in June reached NT$1.8 trillion, or about $62 billion, matching analyst forecasts.  The Taiwanese company, which is Apple’s main iPhone assembler and a producer of servers powered by Nvidia’s AI chips, expects both sequential and year-on-year growth in the third quarter. Analysts from GF Securities noted that the AI supply chain remains strong as cloud providers continue investing heavily in infrastructure. They also projected higher iPhone output driven by customers pushing for faster deliveries ahead of potential new tariffs. Counterpoint Research highlighted that Apple’s smartphone sales in China rose 8% in the second quarter, reflecting steady demand for the iPhone 16 Pro and Pro Max models. While Hon Hai is benefiting from the tech boom, it faces challenges tied to shifting geopolitical dynamics.  In May, the company lowered its full-year revenue outlook, citing uncertainty over a possible US-China trade conflict. This caution came after former US President Donald Trump imposed new trade measures, including a 20% surcharge on goods made in Vietnam and a 40% tax on items rerouted through Vietnam to bypass tariffs. Hon Hai and its affiliates have long used Vietnam as a key manufacturing hub. The company continues to expand and diversify its production footprint to reduce risks linked to trade tensions and political changes. Despite these pressures, Hon Hai remains optimistic about growth as demand for advanced AI products and iPhones sustains momentum heading into the next quarter.