Hon Hai Precision Industry Co posted a 15.8% increase in quarterly sales, driven by sustained demand for AI servers and Apple’s iPhone range. The Taiwanese manufacturing giant, widely known as Foxconn, reported revenue of NT$1.8 trillion (approximately US$62 billion) for the three months ending June, broadly in line with analysts’ forecasts.
The company, which serves as Apple Inc.’s primary iPhone assembler and produces AI server infrastructure using Nvidia Corp’s accelerators, signalled optimism for the remainder of the year. It expects third-quarter sales to register both sequential and year-on-year growth.
Analysts at GF Securities Co, led by Jeff Pu, noted ahead of the announcement that demand within the AI supply chain remains resilient, supported by ongoing investment from major cloud service providers. They also pointed to potential upside in Hon Hai’s iPhone production volumes, as customers seek faster shipments to mitigate the risk of upcoming trade tariffs.
In China, research firm Counterpoint observed an 8% rise in Apple smartphone sales during the second quarter, underpinned by strong demand for the iPhone 16 Pro and Pro Max models.
Despite positive sales performance, Hon Hai continues to navigate significant geopolitical headwinds. The company lowered its full-year revenue guidance in May due to concerns over escalating US-China trade tensions. The situation has been further complicated by US President Donald Trump’s announcement of a 20% surtax on goods produced in Vietnam and a 40% levy on items trans-shipped through the country. Vietnam has long served as a key production hub for Hon Hai and its subsidiaries.
As global trade dynamics evolve, Hon Hai is actively seeking to diversify its manufacturing base while responding to unpredictable policy shifts across key markets.
-Bloomberg
