Ahead of iPhone 16, AI demand boosts Apple supplier Foxconn's profits

Foxconn, Apple's iPhone 16 manufacturer has reported a fourth consecutive quarter of profit increases, which it credits to demand for AI servers.

For the previous quarter, Foxconn's increased profits came from better than expected demand for the iPhone. That is likely to continue with the forthcoming launch of the iPhone 16 range, but for the quarter from April to June 2024, Foxconn says its "strong growth momentum" came mostly from AI servers.

According to CNBC, those servers accounted for over 40% of Foxconn's server business in the quarter. Overall, Foxconn said that its net profit rose to 35.05 New Taiwan dollars ($1.09 billion), compared to NT$33 billion in the same quarter of 2023.

It amounts to a 6% rise in net profit, and was ahead of analysts' expectations.

While Foxconn singled out AI server demand, the quarter beginning in April is also when it starts production of the next iPhone. Overall, Apple accounts for more than half of Foxconn's revenues.