Business
Foxconn Exceeded Expectations with Record Third-Quarter Sales due to AI Demand.
(VOR News) – Foxconn, the largest contract electronics maker in the world, achieved its highest-ever revenue for the third quarter, surpassing industry predictions in the process.
This was made feasible by the robust demand for servers that utilize artificial intelligence, which enabled Foxconn to attain levels of accomplishment that had never been seen before.
The income of Apple’s leading iPhone assembler increased by 20.2% compared to the previous year, reaching 1.85 trillion Taiwanese dollars. This is a significant increase overall. When converted to dollars in the United States, this amount is comparable to $57.3 billion.
“We exceeded our original growth expectations,” Foxconn said.
“The company’s original expectations were for significant growth.” The statement was issued by the company aforementioned.
In addition to that, there was an LSEG SmartEstimate that was 1.79 trillion Taiwan dollars ahead of it. Estimates that are generated by analysts who are more accurate on a consistent basis are given greater weight by this SmartEstimate. A further demonstration of the fact that it was ahead of the curve was provided by this phenomenon.
Foxconn, whose customers include the artificial intelligence chip manufacturer NVIDIA NVDA.O, has stated that the cloud and networking products department of the company has achieved strong revenue growth as a direct result of the robust demand for AI servers. This growth has been attributed to the fact that the demand for AI servers has improved significantly.
The market for smart consumer devices, which includes iPhones, experienced a rapid rise from one quarter to the next as a result of the debut of new products; however, its performance from one year to the next was not different from what it had been in the previous year.
This was the case despite the fast growth that occurred from one quarter to the next. In the past, Taiwan’s technology businesses have historically begun their rivalry to supply big vendors like Apple with smartphones, tablets, and other electronic gadgets in order to get ready for the holiday season in Western markets. This was done in order to prepare for the holiday season in Western societies.
The beginning of this competition normally takes place during the third quarter of the second half.
The total sales for the month of September reached T$733 billion, which is the second-highest figure ever recorded for the month and marks a year-on-year increase of 10.9%.
Foxconn sold T$733 billion in September.
When asked about its forecasts for the current quarter, Foxconn reacted by saying, “We anticipate our operation to gradually gain momentum as we enter the peak season in the second half of the year.” This statement was made in response to a question regarding the company’s forecasts.
This assertion was followed by the statement that stated, “The fourth quarter is anticipated to be roughly in line with current market expectations,” yet the statement did not provide any additional rationale for this assertion.
In addition, it is important to take into consideration the fact that the firm does not offer any mathematical projections.
The stock of Foxconn has increased by 86% so far this year, which is far higher than the overall rise of 24% that the Taiwan market has experienced.
Additionally, the stock of Foxconn has increased by a significant amount. In contrast to the benchmark index, which had experienced a decrease of 0.4%, they finished the day with a gain of 3.7%, which was a significant difference. This was prior to the disclosure of the revenue numbers, which was anticipated to take place within the brief span of time that followed.
On November 14th, it is anticipated that the corporation will make the comprehensive report of results for the third quarter available to the general public. The firm has taken the decision to hold its annual Tech Day on October 8 and 9, which is an event that is commonly used for the release of new products or partnerships. Tech Day is an event that is frequently used.
SOURCE: CNBC
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