Foxconn Expects Server Revenue to Surpass iPhone Sales Within Two Years

Foxconn, the world's largest contract electronics manufacturer and Apple's primary iPhone producer, expects its server revenue to exceed its iPhone revenue within two years, according to Taiwan’s Central News Agency.

Credit: GETTY IMAGES

Chairman Young Liu stated at Nvidia’s annual developer conference, GTC, on Tuesday that this shift would "definitely happen within two years" and could even occur as early as this year.

Foxconn manufactures Nvidia’s latest artificial intelligence servers, including the GB200 and GB300 models. The company confirmed Liu's comments on Wednesday.

“We do most of the Nvidia systems, not 100% of them, but most of them,” Liu said in a live podcast with The Acquired at GTC.

During Foxconn’s earnings call last week, Liu revealed that the company’s AI server revenue is expected to reach TWD 1 trillion (USD 30.29 billion) this year, accounting for more than half of its total server revenue.

He also noted that revenue from cloud and networking products, driven by strong demand for AI servers, will approach that of smart consumer electronics, including iPhones, in 2024.

Last year, 30% of Foxconn’s revenue came from cloud and networking products, while 46% came from smart consumer electronics.

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• Foxconn expects server revenue to surpass iPhone revenue within two years.

• Chairman Young Liu suggested this could happen as early as 2024.

• The company manufactures Nvidia’s latest AI servers, including the GB200 and GB300.

Source: REUTERS