Foxconn Reports Strong AI Server Growth but Declining iPhone Revenue

The Taiwanese electronics giant misses profit forecasts as consumer electronics underperform, while AI server demand continues to surge.

Foxconn's AI server revenue grew 150% in 2024, with further growth expected in 2025, driven by strong demand from cloud service providers and Nvidia partnerships.
The company reported a 13% drop in Q4 net profit to NT$46.3 billion, missing analysts' expectations due to weak consumer electronics performance.
Full-year revenue rose 11% to NT$6.9 trillion, exceeding market forecasts, but profit growth was limited by investment and currency exchange losses.
Foxconn is expanding AI server production, including a $900 million mega-plant in Mexico and a new facility in Houston to assemble servers for Apple Intelligence.
Chairman Young Liu highlighted challenges from U.S. tariffs but expressed confidence in Apple's potential in generative AI and continued collaboration.