Foxconn's future: AI servers set to overtake iPhone revenue

Hon Hai Precision Industry Co., or simply Foxconn (the world's largest iPhone assembler), as many of us know it, could see a serious shift in its revenue model.

The chairman of Foxconn stated on Tuesday that the company's AI server revenue is expected to surpass its iPhone production revenue within the next two years, potentially reaching this milestone as soon as this year.

Speaking at Nvidia's GTC (an AI conference in San Jose, California), the chairman emphasized that AI would be the company's primary focus in 2025, as the rapid development of AI applications is driving increasing demand for AI servers.

The boss described 2025 as Foxconn's "first year of AI", highlighting the company's production and shipment of Nvidia's GB200 servers, along with the anticipated launch of the GB300 in the latter half of the year, which are expected to fuel significant revenue growth.

Liu also mentioned that Foxconn is currently the world's leading AI server supplier and stands to benefit the most from the expanding AI market, although US President Donald Trump's policies remain a potential challenge.



For smartphone users, this shift at Foxconn could signal an evolving landscape for the devices they love. The company, which has been the backbone of Apple's iPhone production for over a decade, is moving into the AI sector in a big way.

While the iPhone has long been a top source of revenue for Foxconn, the company is now positioning itself to tap into the booming AI server market. Does this mean the iPhone's production will be neglected? I sure hope that's not the case.
For consumers, this may mean the rise of new, cutting-edge technology in areas beyond smartphones. AI-powered systems, including advanced robots and servers, will likely play a larger role in our daily lives, perhaps even impacting the future of smart devices, including phones. With Foxconn's increased focus on AI and electric vehicles, smartphone users might see innovations not just in hardware but also in the technology that powers their devices.