TAIPEI, Feb 4 (Reuters) - Taiwan's Foxconn ( 2317. TW ), opened a new tab on Apple's ( AAPL.O ), the biggest iPhone assembler and the world's biggest contract electronics maker, expecting its business to be "slightly" better this year than last year. " But faced a shortage of chips for AI servers. "We did pretty well last year, although we had a pretty big ride-off in the first quarter," said Foxconn Chairman Liu Yong-wei of Japanese electronics maker Sharp Corp (6753). Sunday. 34% stake cites an article about .T), opens a new tab.
"As for this year's outlook, I think it might be a little bit better than last year," Liu told reporters on the sidelines of the company's annual employee party in Taipei. In November Foxconn said it had a "relatively conservative and neutral" outlook for 2024. Demand for artificial intelligence (AI) servers will "definitely" be good, but global economic uncertainty due to geopolitical issues will affect demand for consumer goods, he added.
Apple on Thursday forecast a drop in iPhone sales and reported overall revenue of $6 billion below Wall Street's expectations as its China business took a hit. The results confirmed some analysts' concerns that the company's signature product is losing ground in key Asian markets where consumers buy foldable phones and phones from Huawei powered by Chinese-made chips.
Liu said chip manufacturing capacity for servers is limited, even with strong demand. "When it comes to meeting demand, new factories are probably needed," he added. Foxconn, formally known as Hon Hai Precision Industry Co Ltd, will report fourth-quarter earnings next month when it will also update its outlook for this year. It released January sales data on Monday. Shares of Foxconn have fallen 2.4% so far this year, compared with a 0.7% gain for the broader market (.TWII), which opens a new tab.
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