Apple Partner Foxconn Reports 11% October Sales Jump

This article first appeared on GuruFocus.

Apple's (NASDAQ:AAPL) top manufacturing partner, Foxconn (FXCOF), just delivered another solid month and AI seems to be a big part of the story. The company reported October revenue of NT$895.7 billion (about $27.5 billion), up 11.3% from last year and 7% from September. It's a clear sign that demand for computing and AI-related products is giving the tech giant's supply chain a nice lift heading into the holidays.

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Foxconn said the growth was driven mainly by strong orders for computers and networking products, thanks to new product launches and early holiday restocking. Its cloud and networking division which makes AI servers and related equipment also saw a sharp boost in demand.

Smart consumer electronics, including iPhones, were steady, showing that while iPhone sales are holding up, AI hardware is quickly becoming the stronger growth driver.

Looking ahead, Foxconn expects another good quarter as AI server shipments accelerate and holiday demand peaks. Still, the company warned it's watching global economic and currency volatility closely as it closes out the year.

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