Foxconn Beats Profit Estimates on AI Servers and iPhone Duo Demand

Hon Hai Precision Industry, widely known as Foxconn, has posted a stellar third-quarter earnings report, beating market expectations with a 34% jump in net profit, according to Bloomberg.

The massive electronics manufacturer pulled in around US $2.35 billion for the quarter, heavily driven by surging AI server demand and strong interest in the iPhone Duo.

The explosive growth of AI server manufacturing, bolstered by its close partnership with Nvidia, has turned data center hardware into a primary growth driver. At the same time, strong consumer interest in Apple’s high-end smartphone lineup has kept its traditional hardware division performing well despite broader economic pressures on global smartphone sales.

As a primary manufacturer for Nvidia’s advanced graphics processing units and server racks, Foxconn is capturing a massive share of the hardware buildout. High-performance AI hardware carries strong production volume, helping lift overall revenue across the board. Foxconn management remains optimistic about the sector, projecting high double-digit growth for AI rack shipments moving into next year as data center operators continue scaling up capacity.

Even as AI infrastructure dominates headlines, Foxconn’s partnership with Apple continues to anchor its consumer technology business. Global smartphone demand has largely plateaued, but high-end models are bucking the trend. According to recent estimates from Bloomberg Intelligence, Apple’s premium iPhone Duo is projected to pull in strong numbers, with early forecasts pointing toward 16 million units sold in its first year.

Consumers are increasingly gravitating toward advanced, feature-rich devices, protecting Apple’s margins and ensuring steady assembly volume for Foxconn’s factories in Asia and abroad. Looking ahead, Foxconn expects its momentum to carry through the remainder of the year and into 2027.