The Taiwanese company Foxconn, which is the world’s largest electronics manufacturer and assembler of Apple’s iPhone smartphones, on Sunday, May 5, released information about its record sales results for April of the current year and confirmed expectations for revenue growth for the second quarter of 2024.
In the official statement of the mentioned firm, it is also separately noted that the period from April to June, the traditional annual is what can be described as an off-peak season. During these three months, as underlined by the company, the major products are in the transition stage from the old to the new. At the same time, Foxconn expects that from April to June of the current year, its revenue will demonstrate the dynamic of the growth. The company predicts that the corresponding indicator will show a tendency to increase both compared to the first quarter of 2024 and relative to the period from April to June 2023. At the same time, the manufacturer did not specify exactly what quantitive results are expected for the second quarter of the current year.
Foxconn reported that its revenue last month was fixed at 510.9 billion Taiwanese dollars (15.83 billion US dollars). The company noted that this result is a record. The manufacturer’s April revenue increased by 19% compared to the same period last year. The corresponding figure for March was fixed at 447.54 billion Taiwanese dollars. In this case, there was also an increase in revenue year-on-year. The March figure increased by 11.8% compared to the result for the same period 2023.
The company focuses on the fact that significant revenue growth is associated with the intensification of the sales process of goods from the category of smart consumer electronics, including smartphones. The manufacturer also noted that the April result was partly due to the high level of demand for servers with artificial intelligence. This factor has become a significant driving force in the context of ensuring sales growth in the segment of cloud and networking products. The corresponding indicator has increased significantly compared to the result for the second quarter of last year.
Information about Foxconn’s sales volumes in April was released ahead of the company’s report on total revenues for the first three months of 2024. The mentioned report will be published on May 14th.
Foxconn in early April announced the expectation that its revenue for the first quarter of 2024 would be fixed at 1.322 trillion Taiwanese dollars. This indicator is 9.6% lower than the result for the same period last year. It is worth noting that the consensus forecast of LSEG SmartEstimate analysts provides that the manufacturer’s revenue for the first quarter of 2024 will amount to 1.401 trillion Taiwanese dollars.
It is worth noting that every year the period from January to March differs from the previous quarter by a lower level of intensity in the product sales sector against the background of a slowdown in activity on the part of the consumer community. In the last three months of each year, Taiwanese tech companies enter into a kind of battle for customers in Western markets ahead of the holiday period. In this case, it implies competition in the context of supplying smartphones, tablets, and other electronics to large vendors.
Foxconn is generally optimistic about its business prospects in 2024. In March, the company published a very sanguine forecast for the current year. The manufacturer expects its revenue to show significant growth for the whole of 2024. The company assumes that the basis for the corresponding dynamic will be the intense demand for artificial intelligence servers.
Since the beginning of 2024, the manufacturer’s shares have increased in price by almost 50%.
As we have reported earlier, Foxconn Adds $1 Billion to Investment in Apple India Plant.
