Foxconn Q4 net profit up 33%

Taiwanese tech giant Foxconn on Thursday reported a 33-percent jump in net profit during the final three months of 2023, marking the second straight quarter of growth for the Apple supplier.

The firm — also known by its official name Hon Hai Precision Industry — is the world’s biggest contract electronics manufacturer and assembles devices for several companies, most notably Apple’s iPhones.

It said net profit for OctoberDecember rose to TW$53.1 billion ($1.6 billion).

The strong figures follow betterthan-expected profits in its third quarter, thanks to rising demand ahead of the holiday season.

The boost came on the heels of two consecutive quarterly misses — with January-March seeing a drop of 56 percent and a 1-percent fall in the following three months.

Foxconn is China’s largest private-sector employer, with more than a million workers nationwide.

But the company has been looking to diversify its manufacturing supply chain after it saw production hit by strict Covid restrictions in China and diplomatic tensions with the United States.

It also has ambitions to move beyond electronics assembly, wading into the e-vehicle market as well as pivoting its investments to artificial intelligence (AI) technology.

In October, Foxconn and US chip giant Nvidia said they would team up to create “AI factories,” powerful data-processing centers that would drive the manufacturing of next-generation products.

But challenges could lie ahead, with a recent Counterpoint Research report saying that iPhone sales in China fell nearly a quarter over the first six weeks of 2024.