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