Foxconn Revenue Boosted by AI Server Demand, Offsetting Weak Smartphone Sales

Foxconn, the main manufacturer of Apple products, experienced a 20.2% increase in revenue in the third quarter, exceeding analyst expectations. This growth was driven by strong demand for AI servers, which offset weaker sales of smartphones. The company attributed the record-breaking sales to its growing business supplying servers equipped with Nvidia AI chips. While Foxconn remains closely tied to Apple, with iPhone sales still a significant portion of its revenue, the company is benefiting from the surge in demand for AI infrastructure. However, the long-term sustainability of this growth depends on the development of profitable AI applications that justify the substantial investments in data centers and servers.