Apple’s iPhone assembler Foxconn sees slower revenue growth in October
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Foxconn Technology’s (OTCPK:FXCOF) October revenue climbed 8.59% year-over-year but it was the slowest growth since February, igniting concerns over potential demand momentum for AI products, and iPhones.
Outlook: However, the Apple (AAPL) supplier — which is formally known as Hon Hai Precision (OTCPK:HNHAF) (OTCPK:HNHPF) — said that the second half of the year is traditionally a peak season for the Information and Communications Technology, or ICT, industry, so operations are expected to gradually gain momentum quarter by quarter.
In the fourth quarter, operations are expected to show both quarterly and yearly growth, the company added.
October Revenue: Foxconn said revenue grew 8.59% year-over-year to NT$804.85B, reaching the highest figure for the same period on record. Month-over-month the revenue rose 9.80%. In September, the company had generated NT$733.02B.
Month-over-month: Foxconn said Computing Products, and Smart Consumer Electronics showed strong growth month-over-month, ahead of China’s Double 11 shopping festival and Thanksgiving holidays.
Components and Other Products delivered significant growth in the period, but Cloud and Networking Products declined compared to the previous month.
The company noted that AI continued to drive server demand, while there was a slight decline month-over-month due to the high base in September.
Year-over-year: The company said that due to the increased demand for AI servers, revenue for the Cloud and Networking Products segment saw strong growth.
Nvidia (NVDA) is among the Taiwan-based company’s customers.
In the Components and Other Products unit revenue grew significantly year-over year driven by an increase in shipments of key components and growth in automotive-related business.
Computing Products saw significant growth, benefiting from the demand for new products, but Smart Consumer Electronics’ revenue remained flattish year-over-year.
Foxconn is slated to report its third quarter results on Nov. 14.