Foxconn's September revenue reached NT$733.024 billion (approx. US$22.91 billion), marking a 33.69% increase quarter-over-quarter and a 10.94% rise year-over-year. This strong performance was primarily driven by significant growth in smart consumer electronics and cloud and networking products.
The company's third quarter 2024 revenue hit NT$1.85 trillion, a record for the period, representing a 19.46% increase compared to the second quarter of 2024 and a 20.15% rise compared to the third quarter of 2023. For the first nine months of 2024, revenue totaled NT$4.72 trillion, up 9.73% compared to the same period last year, also setting a record high.
Foxconn noted that the second half of 2024 is traditionally the peak season for the information and communication technology (ICT) industry, and its operations are expected to strengthen. For the fourth quarter of 2024, the company anticipates its performance to align closely with current market expectations.
Segmental performances
The smart consumer electronics segment saw robust performance in September, spurred by new product launches from key customers. Strong demand for AI servers drove significant month-on-month growth in the cloud and networking product category. Additionally, increased shipments of smart consumer electronics boosted component and related product shipments, contributing to notable growth in this segment as well.
However, due to weak demand momentum, the computing products category declined compared to the previous month.
Year-over-year, Foxconn reported strong growth in the cloud and networking products category, driven by robust demand for AI cloud solutions. The computing products category also saw significant growth, supported by sustained demand for newly launched products. The components and other products category experienced notable growth, fueled by increased shipments of key business-related components and automotive products.
The smart consumer electronics category saw a slight year-over-year decline as some customer product launches were moved up to August 2024.
iPhones and AI servers boost Foxconn's revenue
Industry sources attributed Foxconn's September revenue growth primarily to Apple's iPhone 16 series and the rising prominence of AI server products in 2024. The iPhone 16 series, launched on September 20, saw an initial surge in demand concentrated within the month. While the iPhone 16 series' market performance appears below early expectations, Apple's website still lists a 3-4 week wait time for the iPhone 16 Pro Max. As a result, the momentum from the iPhone 16 series is expected to continue into early October.
Concerning AI servers, despite external reports of challenges with the shipment of the new GB200 series, it has now been confirmed that deliveries to customers will officially commence in early December.
In addition to the GB200 series, Foxconn has secured a stable supply position in the AI server market with its existing H series products. As long as demand for AI servers persists, growth momentum in this segment is expected to remain steady. This will not only drive revenue but also help mitigate profitability pressures, as Foxconn now supplies up to 80% of the components within its AI server systems.
With sustained momentum from the iPhone 16 series, expected to carry into early October, and robust demand for AI servers, including new products shipping in December, the market anticipates Foxconn's performance in the fourth quarter of 2024 to remain strong.
Article translated by Jingyue Hsiao
