AI demand fails to offset weak iPhone performance, Foxconn Precision's sales growth for two consecutive months is only single-digit
AInvestThursday, Dec 5, 2024 5:50 am ET
1min read
AAPL --
GOOG --
META --

Apple's (AAPL.US) main manufacturing partner Foxconn Industrial Internet reported a second consecutive month of single-digit percentage growth in sales, raising concerns that demand for AI infrastructure cannot offset the weakness in iPhone sales. The company's November sales rose 3.5% year-on-year to NT$672.59 billion, compared with 8.6% in October, both below analysts' expected 13% growth trajectory for the quarter, data released on Thursday showed. Foxconn Industrial Internet and other AI hardware suppliers have benefited from large tech companies such as Meta (META.US) and Alphabet (GOOGL.US) spending heavily on servers and data centers since OpenAI launched ChatGPT and sparked the AI fever. However, investors have started to question whether these spending can bring enough returns. Meanwhile, Apple's iPhone sales this year are expected to be lackluster, while its business accounted for more than 50% of Foxconn Industrial Internet's total sales in the past. Foxconn Industrial Internet executives said on the latest earnings call that they expect the sales of cloud business, including AI servers, to be roughly comparable to that of the handset business by 2025.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.