Ahead of the launch of the iPhone 16 series, the demand for AI has brought huge profits to Apple supplier Foxconn.
Foxconn, the manufacturer of Apple's iPhone 16, reported its fourth consecutive quarter of increased profits, largely due to demand for AI (Artificial Intelligence) servers. Foxconn's profits also rose in the previous quarter thanks to better-than-expected demand for iPhones.
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According to CNBC, AI servers accounted for more than 40% of Foxconn's server business in the second quarter. Also in the last quarter, Foxconn said that its net profit increased to NT$35.05 billion ($1.09 billion), much higher than NT$33 billion in the second quarter of 2023. This is equivalent to a 6% increase in net profit and far exceeded analysts' expectations.
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In addition, Q2 is also the time when the company starts producing the next iPhone. Overall, Apple brings in more than half of Foxconn's revenue. If the new iPhone line "sells well", Foxconn will bring in even more revenue.
