Foxconn Shifts Focus to AI Servers Amid Smartphone Decline

Foxconn, historically linked to Apple, has announced a significant pivot towards AI server production, yielding a 24% increase in net profit to approximately $5.1 billion for 2025. This growth is attributed to a transformation in their business model, where the revenue share from cloud services and AI servers rose dramatically from 30% to 40%, while smartphone revenue declined from 46% to 38%. The company’s success in the AI domain is underscored by a double-digit growth in AI server shipments for Q1 2026, marking a shift from manual assembly to automated processes utilizing humanoid robots in factories such as their sprawling site in Houston, Texas.