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Apple supplier Foxconn cautious despite beating earnings forecasts

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Apple supplier Foxconn beat estimates for second-quarter earnings but the company expects revenue for its smart consumer electronics products to slightly decline year on year in the third quarter

beat estimates for second-quarter earnings on Monday thanks to a booming artificial intelligence sector but retained a cautious outlook for this year due to global economic uncertainties.

Liu told an earnings briefing he sees a lot of potential in India, where Foxconn has rapidly expanded its manufacturing facilities, adding: "several billion dollars in investment is only a beginning".to make semiconductors in India, but said it intended to apply for incentives under the country's chip production plan.

As generative AI applications explode, Foxconn is gaining momentum in servers for this segment and believes it can deepen collaboration with North American customers, Liu added, offering a bright spot amid slower demand for smartphones and PCs.Earlier, Foxconn posted a 1% drop in second-quarter net profit that beat analyst expectations.

 

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