Foxconn just dropped a bombshell—and it’s both exciting and worrying. The Taiwanese tech giant, best known as Apple’s main iPhone assembler, reported record Q2 revenue. At first glance, everything looks great. But under the surface, tensions are rising.
AI Boom Boosts Foxconn’s Revenue
In the second quarter, Foxconn earned T$1.797 trillion. That’s a 15.82% jump compared to last year and higher than market forecasts. The credit goes mainly to booming demand for AI products. Foxconn’s cloud and networking units—working with big names like Nvidia—saw major growth.
It’s clear: AI is not a trend, it’s a revolution, and Foxconn is cashing in.
But iPhone Growth Hits a Wall
Even though Foxconn is Apple’s biggest partner, the smart consumer electronics division (which includes iPhones) didn’t do as well. Revenue was “flattish” compared to last year. The reason? Exchange rate pressure. The value of currencies moved in ways that ate into profits.
It’s a reminder: even the biggest players can’t escape global economic shifts.
June Hits a New High
Despite the mixed bag, June was a record-breaker. Revenue for the month hit T$540.237 billion—Foxconn’s best ever for June. This pushed confidence for short-term growth.
Foxconn expects this quarter to be better than the last one and better than the same time last year. But there’s a catch.
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Trump’s Trade Threats Cloud the Future
Here’s the twist: Former U.S. President Donald Trump has warned 12 countries about new tariffs. He’s planning to send “take it or leave it” offers on Monday. That includes places like Taiwan, where Foxconn is based.
If these tariffs hit hard, Foxconn’s costs could rise. And that could slow down its AI gains or hit iPhone assembly, especially in China’s Zhengzhou, home to the world’s biggest iPhone plant.
Foxconn didn’t give exact numbers for its outlook, but it was clear: geopolitical tension and exchange rate swings are serious threats.
Big Gains, But Stock Still Down
Here’s the irony. Foxconn’s stock jumped 76% last year, far ahead of the overall Taiwan market. But this year, it’s down 12.5%. Investors are nervous. The tech world is changing fast, and politics is playing a big part.
Foxconn is winning big in the AI game. But this isn’t a calm ride. The company is caught in a crossfire of global politics, currency shocks, and trade threats.
This is the modern tech world—where growth and danger come hand in hand. For now, Foxconn is standing tall. But the real question is: How long can it dodge the bullets?
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