If we really want a signal that we've entered the age of AI and left mobile behind, this is it. The iPhone is no longer Foxconn's most important business.
For investors and industry watchers, this is a crucial moment. The company best known as Apple's factory floor has become AI first manufacturers. If Foxconn was once the backbone of the smartphone era, it is now building an AI era infrastructure.
Foxconn's Cloud & Networking Products Division has been kicking out Smart Consumer Electronics, which runs iPhone Assembly Operations for the first time. In the second quarter of 2025, Cloud & Networking Revenue jumped to $731.8 billion, 47% year-on-year, covering NT $634.5 billion generated by Smart Consumer Electronics.
More than half of its cloud revenues are now derived from AI servers, up over 60% in the second quarter alone. The company expects AI server revenue to rise 170% year-on-year in the third quarter, driven by increased demand from hyperscale cloud providers.
“The company has grown from a legacy business of building smartphones and assembling computers so that Apple is not just an AI server, but also a key player in new product categories such as EVs and humanoid robots.”
This surge marks a structural shift. Apple, Long Foxconn's most important customer, is no longer a major growth driver. Instead, Foxconn is rapidly positioning itself as the AI infrastructure heavyweight. The company has increased its market share of AI servers, including specialized ASIC variants, and works closely with partners such as NVIDIA on next-generation server architectures and humanoid robot integration.
Geographically, FOXCONN is fighting geopolitical and tariff risks by expanding production of AI servers in the United States, including planned operations in Texas, Wisconsin, California and Ohio. While Mexico remains a major foundation, the growing US footprint reflects its strategic position for North American customers, including large cloud providers.
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Beyond AI servers, Foxconn is diversifying into electric vehicles, semiconductors, and healthcare robotics. However, a Barclays survey shows that it now accounts for 41% of total revenue, and is expected to increase more than 70% of the total fiscal year, the server business that has now seized the spotlight.
Meanwhile, Foxconn expects there will be no growth in the Consumer Electronics business, which is home to iPhones.
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