Foxconn Reports Sharp Rise In First-quarter Net Profit

Taipei, (APP - UrduPoint / Pakistan Point News - 14th May, 2024) Taiwanese tech giant Foxconn on Tuesday reported a 72 percent jump in net profit during the first three months of 2024 as demand for artificial intelligence technology grows.

The firm -- also known by its official name Hon Hai Precision Industry -- is the world's largest contract electronics manufacturer and assembles devices for several companies, most notably Apple's iPhones.

It said net profit for January-March rose to US$679 million from US$396 million in the same period last year.

While the boost is the third consecutive quarter of profit growth, it is still below expectations, and Foxconn spokesperson James Wu sought to paint an upbeat picture during Tuesday's earnings call.

"We expect that the strong demand for AI servers will bring a new huge market, which is why we are optimistic about this industry," he said.

He added that "Hon Hai is almost the only manufacturer that can develop every key component by itself, from modules, basic servers, high-speed network switches, to data centres".