Hon Hai’s Profits Dip Amidst AI Uncertainty and iPhone Sales Weakness
By Jane Lanhee Lee and Debby Wu
March 14, 2025
Hon Hai Precision Industry Co., a key supplier to Nvidia, experienced an unexpected drop in profits. The Taiwanese company announced a 13% decrease in net income, totaling NT$46.3 billion (approximately $1.4 billion USD). This figure fell significantly short of analysts’ expectations, which had predicted a 2.3% increase. The decline was primarily attributed to sluggish iPhone sales in China, which eroded profit margins.
Despite the disappointing earnings report, Hon Hai, a crucial assembler of servers for Nvidia, anticipates a doubling in AI-related revenue during the current quarter. The company also projects overall revenue growth for the year 2025, though specific figures were not disclosed.
