Hon Hai’s first-quar­ter sales boosted by Ap­ple’s new iPhones: an­a­lysts

The China Post - - LOCAL -

The world’s big­gest elec­tron­ics man­u­fac­turer for hire, Hon Hai Pre­ci­sion In­dus­try Co. ( ), posted higher sales for the first quar­ter of this year, com­pared with the same pe­riod last year, due to solid de­mand for two of the prod­ucts it makes — Ap­ple Inc.’s new iPhone mod­els — the iPhone 6 and the iPhone 6 Plus, an­a­lysts said Satur­day.

They said that af­ter Ap­ple launched the two new iPhone mod­els in Septem­ber, strong de­mand ex­tended to the first quar­ter of this year from the fourth quar­ter of last year, help­ing Hon Hai, which has been dubbed one of the most im­por­tant “Ap­ple con­cept stocks” in Tai­wan, record a more than 14 per­cent year-on-year sales in­crease for the three-month pe­riod.

In the Jan­uary-March pe­riod, Hon Hai, the world’s largest con­tract elec­tron­ics maker, posted NT$1.01 tril­lion (US$32.27 bil­lion) in con­sol­i­dated sales, up 14.87 per­cent from a year ear­lier. The first quar­ter fig­ure was the high­est ever com­pared with the same pe­riod in the past.

Still, the sales fig­ure fell 32.38 per­cent from the NT$1.5 tril­lion recorded in the fourth quar­ter of last year, a tra­di­tional peak sea­son in the global high-tech in­dus­try, due to the Christ­mas buy­ing spree.

In March alone, Hon Hai’s con­sol­i­dated sales to­taled about NT$338.3 bil­lion, up 20.8 per­cent from Fe­bru­ary as the num­ber of work­ing days re­turned to nor­mal af­ter the Lu­nar New Year hol­i­day. An­a­lysts said that the re­bound in March sales also led Hon Hai to post sales of more than NT$1 tril­lion in the first quar­ter.

Last month, Hon Hai’s ship­ments in con­sumer elec­tron­ics, com­mu­ni­ca­tions and com­put­ing de­vices all moved higher, the man­u­fac­tur­ing gi­ant said, adding that the March fig­ure was the sec­ond high­est level com­pared with the same month in the past, only trail­ing the NT$358 bil­lion recorded in March 2012.

In ad­di­tion to the con­tri­bu­tion from Ap­ple’s or­ders, an­a­lysts said that Hon Hai shipped more to smart­phone ven­dors from the An­droid camp. Sev­eral of its sub­sidiaries, in­clud­ing Hong Kong Listed FIH Mo­bile Ltd. ( ), which has a broad pro­duc­tion base in China, posted higher sales. Hon Hai cur­rently holds around 70 per­cent of the stakes in FIH Mo­bile.

An­a­lysts said that Hon Hai’s March sales fig­ure, which rose 9.9 per­cent from a year ear­lier, came within the mar­ket’s pre­vi­ous fore­cast. Look­ing at the sec­ond quar­ter, an­a­lysts said, sales of the iPhone 6 and iPhone 6 Plus are ex­pected to en­ter into a cycli­cal slow­down, while ship­ment growth of com­put­ing and In­ter­net com­mu­ni­ca­tions de­vices could re­main sta­ble.

They said that Hon Hai is ex­pected to wit­ness its sales for the April-June pe­riod fall from the pre­vi­ous quar­ter, but the sales growth mo­men­tum will likely pick up in the sec­ond half of this year with the peak sea­son ap­proach­ing.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.