TAIPEI: Taiwan’s Foxconn, the world’s largest contract electronics maker and biggest assembler of Apple’s iPhone, reiterated on Sunday that it expects revenue to rise in the second quarter and reported record sales in April. Foxconn said in a statement that this year’s second quarter “remains the conventional off-peak season, with major products entering the transition period between senior and novel products.” However, he added: “Operating guidance for the second quarter is expected to show growth both quarter-over-quarter and year-over-year.”
The statement was not detailed, and the company did not provide numerical guidance.
The company, formally called Hon Hai Precision Industry Co Ltd, said April revenue reached T$510.9 billion ($15.83 billion), the highest result ever for the same period and an escalate of 19%. compared to the previous year.
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Revenue from sales of sharp consumer electronics products, including smartphones, showed “significant growth” year-on-year in April, the company said.
The company added that mighty demand for artificial intelligence (AI) servers drove “mighty growth” in April year-on-year in its cloud and networking products segment.
The monthly sales data comes ahead of Foxconn’s first-quarter earnings announcement, which will be released on May 14.
Foxconn previously reported that first-quarter revenue fell 9.6% year-over-year to T$1.322 trillion, lagging the LSEG SmartEstimate of T$1.401 trillion, giving more weight to forecasts from analysts who are more consistently true.
The first quarter is traditionally a quieter quarter than the previous one, a season in which Taiwanese technology companies race to deliver smartphones, tablets and other electronics to major suppliers such as Apple by the end of the year in Western markets.
Apple’s quarterly results and forecasts on Thursday topped modest expectations, and CEO Tim Cook said revenue growth would return in the current quarter.
In March, Foxconn adopted a much more sanguine outlook for this year, saying in its fourth-quarter earnings call that it expected significant revenue growth from growing demand for AI servers.
Foxconn shares are up nearly 50% this year, compared with a 13% gain in the broader market.
They closed up 1.3% on Friday.
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