Foxconn reports six percent rise in Q2 profit
Apple supplier Foxconn on Wednesday reported a six percent rise in second-quarter net profit, driven by strong AI server demand as the company touted "strong growth momentum" from the technology boom. The world's largest contract electronics maker, said net profit for the April-June quarter rose to US$1.09 billion from US$1.02 billion in the same period the previous year. That beat analysts' average estimate of US$1.06 billion. It was the firm's fourth consecutive quarterly profit rise. The company said AI servers accounted for more than 40 percent of its server business in the second quarter, saying its next generation AI computing solution had brought "strong growth momentum." Foxconn had previously expected revenue for the second quarter to grow significantly from a year earlier, although revenue from smart computer electronics including smartphones was likely to be flattish. The company expected its operations to pick up gradually in the second half as many electronics vendors, including Apple, usually release new products ahead of the year-end holiday season. In a report prior to the earnings announcement, Taipei-based KGI Securities revised up its sales forecast for Foxconn this year, saying strong demand for new iPhones and AI servers were likely to lead to a better-than-expected outlook for the firm in the second half. (Reuters)