The largest iPhone assembler achieves profits that exceed expectations

Foxconn, Apple’s largest assembly partner, reported a net profit of NT$33.3 billion ($1.1 billion) in the second quarter of 2022, higher than a forecast of NT$30.8 billion. Foxconn’s quarterly revenue was NT$1.5 trillion. Taiwan (China) Group overcomes difficulties thanks to increasing demand of cloud computing products.

Foxconn experienced the second quarter of 2022 with many difficulties such as component shortages, economic slowdown and epidemic-related supply chain bottlenecks in China. The Taiwanese corporation’s bright spot is increasing revenue from the production of Dell desktop computers and Sony PlayStations game consoles. Foxconn also leverages its production scale to gain advantages when negotiating with customers and suppliers.

Meanwhile, Apple recorded a strong increase in business results in the second quarter of 2022, especially thanks to the iPhone, despite the lingering impact from the pandemic. Worrying signs remain, though, with Macs, iPads and Apple wearables. Sales of these products declined year-on-year.

Facing a decline in user demand for devices, the Taiwanese company expanded its revenue from corporate customers, recording steady sales in cloud and network services in the coming year. July.

Foxconn’s server business is growing rapidly due to the need for digital transformation and the worldwide trend of cloud computing.

Foxconn’s business is expected to grow significantly when demand recovers, and the “congestion” situation in China affecting the supply chain is overcome.

Foxconn is also planning to expand into electric vehicles. The world’s largest contract manufacturer targets 5% of the electric vehicle market share by 2025, thanks to the acquisition of Lordstown’s electric pickup truck factory in Ohio, USA. The two companies will announce a new vehicle project in the fourth quarter of this year.