Hon Hai posts highest-ever August sales

2017/09/09 16:51:59 fontsize-small fontsize-default fontsize-big
Hon Hai posts highest-ever August sales

Taipei, Sept. 9 (CNA) Taiwan-based Hon Hai Precision Industry Co. (鴻海), the world's largest contract electronics maker, posted the highest-ever sales for August on the back of strong demand for computing devices.

In August, Hon Hai's consolidated sales totaled NT$316.79 billion (US$10.56 billion), up 0.55 percent from a month earlier and also up 1.31 percent from a year earlier.

Hon Hai, an assembler of iPhones and iPads for Apple Inc., said that its computing devices scored the strongest growth in revenue, reflecting seasonal back to school buying, and they were followed by communications and consumer electronics gadgets.

As one of the most important suppliers to Apple, market analysts said, Hon Hai failed to follow its Taiwanese counterparts to score significant gains in sales for August on the back of the launch of the next generation iPhones since the company is an assembler instead of a component maker.

But Hon Hai's sales momentum could pick up later in the quarter and a stronger showing is expected for the fourth quarter of this year, analysts said.

Among other Apple suppliers in Taiwan, contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) recorded NT$91.92 billion in consolidated sales, up 28.4 percent from July, when the sales figure stood at NT$71.61 billion, which was down 14.9 percent from a month earlier.

Smartphone camera lens supplier Largan Precision Co. (大立光) also posted a 12.84 percent month-on-month increase in consolidated sales for August to achieve a new high of NT$5.01 billion for this year.

Apple has issued an invitation to the press, saying it will hold a product launch event on Sept. 12. That has raised market expectations that the new iPhones will debut that day to trigger replacement waves which could benefit its supply chain for the rest of the year.

The market has embraced high hopes that the new iPhones will boost Hon Hai's shipments later this year since the Taiwanese firm is believed to have secured 90-95 percent of the orders from Apple to assemble one new iPhone model which is equipped with an advanced organic light-emitting diode (OLED) screen, a significant upgrade from the existing liquid crystal display (LCD) version.

Mass commercial production of the OLED iPhone is expected to start in the middle of September, which could lift Hon Hai's sales significantly in the month, analysts said.

They added that Hon Hai is expected to receive most of the orders placed by Apple to roll out the 5.5-inch LCD screen version of the new iPhone, adding that the devices could pave the way for higher profit margins for Hon Hai in the fourth quarter.

In the first eight months of this year, Hon Hai posted NT$2.53 trillion in consolidated sales, up 1.6 percent from a year earlier, the company said.

(By Jalen Chung and Frances Huang)
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