Foxconn successfully expands business beyond just assembling iPhones

The logo of electronics contract manufacturer Foxconn Technology Group, formally known as Hon Hai Precision Industry, is displayed at its headquarters in Taipei. Photo: Agence France-Presse
Foxconn, the Taiwanese tech giant known best for assembling hundreds of millions of iPhones, has expanded its focus, with Apple product assembly no longer its primary business as the company capitalizes on the AI boom to diversify its revenue streams.
Reuters:
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Its revenue from making AI servers and other cloud and networking products, including for major customer Nvidia, surpassed smart consumer products such as iPhones for the first time in the second quarter, marking the culmination of a shift that began years ago and has swept through Taiwan’s tech industry.
While its expansion into EVs and chips has yet to show a meaningful contribution to its topline, Foxconn’s success in AI server manufacturing – the company is Nvidia’s biggest server maker – is the result of its early bets before the technology was thrust into the limelight with the advent of ChatGPT in late 2022.
Consumer electronics accounted for 35% of Foxconn’s total revenue in the second quarter, while cloud and networking business represented 41%. In 2021, consumer electronics represented 54% of its revenue.
Foxconn says it is now one of the world’s largest suppliers of both general-purpose and AI servers, with a market share of nearly 40% in each.

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MacDailyNews Take: So far, Foxconn has better diversified, reducing its iPhone dependence, than Apple itself.

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