TAIPEI, March 14 (Reuters) - Taiwan's Foxconn,
the world's largest contract electronics maker, reported a 13%
drop in fourth-quarter profit as weak performance in its
consumer electronics division offset strength in its AI server
segment business.
Net profit for October-December for Apple's ( AAPL ) top
iPhone assembler and Nvidia's ( NVDA ) AI server maker came in
at T$46.33 billion ($1.41 billion), missing analysts' average
forecast of T$54.4 billion, according to an LSEG consensus
estimate of 15 analysts.
Foxconn said in January its fourth-quarter revenue jumped
15.2% to a record for that quarter on strong sales of AI
servers.
The company, formally called Hon Hai Precision Industry ( HNHPF ), has
said it expects first-quarter performance to be better than the
average level of the past five years, and it will see strong
year-over-year growth. It does not provide numerical guidance.
But an escalating global trade war has dimmed the prospects
for its outlook this year, as it has a major manufacturing
presence in China and Mexico, two of the top U.S. trading
partners that now face increased import tariffs from U.S.
President Donald Trump.
Apple ( AAPL ) said last month it will work with Foxconn to build a
250,000-square-foot (23,200-square-metre) facility in Houston,
where it will assemble servers that go into data centres to
power Apple Intelligence.
Foxconn holds its earnings call at 3 p.m. in Taipei (0700
GMT) on Friday, where it will also update its outlook for the
rest of the year.
Foxconn's shares have fallen 8.7% so far this year, hit by
concerns about U.S. tariffs and trade policy.
($1 = 32.9550 Taiwan dollars)