Foxconn used to make half its revenue from Apple; now it’s below 29%
As Apple’s lead iPhone assembler, contract manufacturing company Foxconn long made more than half of its revenue from the Cupertino company. As of the last quarter, however, that proportion fell to below 29%, and the company says the shift is going to be permanent – leaving investors concerned …
Foxconn, the primary assembler for Apple, has seen a decline in its revenue share from the tech giant, falling below 29% in the latest quarter. Traditionally, the Taiwanese contract manufacturing company made over half of its revenue from Apple. This shift is expected to be permanent, leaving investors concerned. Foxconn's Zhengzhou plant, known as iPhone City, once produced around 80% of the world's iPhones.
However, the company's cloud and networking division, which now builds AI servers, has surpassed 51% of its revenue in the three months to June, marking a significant change in its business focus. This transition to AI servers was described as structural and permanent by Foxconn's rotating CEO, Michael Chiang, who emphasized cloud investment as a critical growth driver for the company over the next few years.
Despite the shift, Foxconn shares have only increased by 17% this year, compared to the 57% rise seen among Taiwanese companies overall.
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