Foxconn’s July Sales Growth Slows to 7.25%—Weakest Since January

Foxconn's growth engine sputters as July sales crawl at their slowest pace in six months.

The iPhone assembler's 7.25% uptick barely moves the needle—analysts yawn while supply chain jitters linger.

Another 'growth story' for shareholders to rationalize over diluted earnings calls.

Foxconn sells Ohio plant, shifts toward AI focus

In a related move on Monday, Foxconn agreed to sell its former car plant in Lordstown, Ohio, for $375 million, machinery included. The company stressed it WOULD continue using the site for a wider array of products that fit its long-term goals.

Foxconn did not spell out exactly what it will build at Lordstown. It did note, however, that its cloud and networking-gear unit has seen “significant growth” in orders.

An industry source familiar with the deal said the Ohio facility will support AI-focused data centers. At more than six million square feet (557,000 sqm), the plant is roughly six times the size of Foxconn’s Houston factory, which is being readied to produce Nvidia’s GB300 AI servers.

The plant’s backstory dates to 2022, when Foxconn bought the former General Motors small-car factory there, named for the town, from now-defunct Lordstown Motors Corp. for $230 million. The two companies had teamed up to build electric pickup trucks at the site, but the venture unraveled when Lordstown Motors went under and filed suit against its partner.

In its Monday announcement, Foxconn said it sold the factory to one of its “existing business partners” but offered no further details. It added that it remains committed to serving U.S. automotive clients and can quickly ramp up vehicle output if needed.

Foxconn has been stretching beyond its roots as an iPhone maker. Just last week, it formed a strategic alliance with TECO Electric & Machinery (1504.TW) to develop data-center projects.

Hon Hai’s broader business may also have been boosted by brisk demand for Apple gadgets. Apple reported its fastest quarterly revenue rise in more than three years on strong Chinese sales and said it expects current-quarter revenue to climb by mid-to-high single digits compared with a year earlier.

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