Foxconn reports 13% profit drop amid iPhone sales decline

Foxconn, the world's largest contract electronics maker, reported a 13% drop in fourth-quarter profit to NT$46.3 billion ($1.4 billion), missing analysts' expectations. This decline was attributed to weak sales in its consumer electronics division, particularly iPhones, despite a surge in demand for AI servers. The company forecasts strong revenue growth in the upcoming quarter, driven by its AI server segment, which saw a 15.2% increase in revenue year-over-year. The broader context includes concerns over escalating trade tensions and U.S. tariffs impacting its operations in China and Mexico. Additionally, Foxconn is collaborating with Apple to construct a facility in Houston for server assembly, indicating potential future growth. However, Foxconn's shares have fallen 8.7% this year, reflecting investor apprehension regarding trade policies.