Taiwan’s Hon Hai Precision Industry Co. posted its strongest third-quarter profit on record as surging demand for artificial intelligence servers and new iPhone production lifted earnings.
The world’s largest contract electronics manufacturer reported net income of NT$49.3 billion ($1.5 billion) in the third quarter, up 41% from the previous quarter and 14% from a year earlier. Revenue growth was driven by robust AI server shipments and seasonal demand for consumer smart products, primarily Apple Inc.’s latest iPhone models.
Chairman Young-Way Liu said the company expects significant revenue growth in the fourth quarter compared to both the previous quarter and last year. However, Chief Financial Officer David Huang noted that while AI server orders have boosted revenue, they’ve also pressured gross margins, which fell to 6.19% in the third quarter from 6.42% in the previous quarter.
The company’s year-to-date profit reached NT$106.4 billion, marking a 20% increase from the previous year. Looking ahead to 2025, Hon Hai anticipates higher AI server unit prices, though analysts remain concerned about potential margin pressure from rapid revenue expansion.
In its electric vehicle business, Liu indicated that negotiations with two Japanese automakers are progressing well, though specific details weren’t disclosed.
