Apple iPhone 16 assembly partner Foxconn has reported a fourth consecutive quarter of profit increases, due to demand for AI servers.
Foxconn had enjoyed increased profits in the previous quarter thanks to better-than-expected demand for the iPhone. That demand is expected to continue later this year, thanks to the upcoming launch of the iPhone 16 lineup. However, Foxconn says the performance in the quarter from April to June 2024, is due to the “strong growth momentum” from AI servers.
CNBC reports those servers accounted for over 40% of Foxconn’s server business during the quarter. Overall, Foxconn’s net profit rose to 35.05 New Taiwan dollars ($1.09 billion), compared to NT$33 billion in the same quarter of 2023, a 6% rise in net profit, and ahead of analysts’ expectations.
While Foxconn may point to AI server demand as the reason for its profit boost, Apple accounts for more than half of Foxconn’s revenues, mostly due to the iPhone lineup.