IPhone Maker Hon Hai Misses Estimates in a China Downturn
- Foxconn is also projecting ‘significant’ growth this quarter
- Taiwanese company is counting on AI to offset smartphones
An Apple store during the first day of sale of the iPhone 15 smartphone in Shanghai.
Source: Bloomberg
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Hon Hai Precision Industry Co. reported a weaker-than-expected profit as demand for iPhones remained sluggish in China, though it projected significant growth in the current quarter.
The Taiwanese company, a key partner to both Apple Inc. and Nvidia Corp., gave that forecast after reporting its strongest monthly sales since the start of 2023, buoyed by rising demand for servers during the AI boom. It reported net profit of NT$22 billion ($679 million) in the March quarter. While that was up more than 70%, it missed an average estimate for NT$29.1 billion.