Hon Hai sales hit record Q1 high

2018/04/11 14:43:26 fontsize-small fontsize-default fontsize-big
Hon Hai sales hit record Q1 high

Taipei, April 11 (CNA) Hon Hai Precision Industry Co., the world's largest contract electronics maker, posted its highest ever first quarter sales figures, with market analysts attributing the growth to solid demand for communications devices and computing gadgets.

The strong demand for the two types of products offset the impact of weaker than expected demand for Apple Inc's premium iPhone X, which was unveiled in September 2017 to mark the 10th anniversary of the iPhone, analysts said.

Hon Hai, one of the most important suppliers to Apple, is believed to serve as the sole assembler of the iPhone X, and about 40 percent of its sales come from orders placed by Apple.

During the January-March period, Hon Hai posted NT$1.03 trillion (US$35.27 billion) in consolidated sales, up 5.22 percent from a year earlier.

Although global demand for the iPhone X has been lower than expected, the iPhone 8 Plus, which was unveiled together with the iPhone X and is also assembled by Hon Hai, still enjoyed solid sales so the Taiwanese firm saw its sales growth momentum rising in the first quarter.

In March alone, Hon Hai's consolidated sales totaled NT$349.15 billion, up 25.68 percent from a month earlier on the back of the increased number of working days after the six-day Lunar New Year holiday fell in February.

The March figure was also up 2.18 percent from a year earlier, Hon Hai's data showed.

Last month, computing devices made the largest contribution to Hon Hai's sales growth, followed by communications products and consumer electronics devices, Hon Hai said.

Looking ahead, Hon Hai's sales for the second quarter are expected to fall at single digit pace from the first quarter because consumers tend to put off purchasing plans before international brands unveil new products in the third quarter, analysts said.

However, sales growth is expected to pick up in the third quarter when peak season arrives, analysts added.

Shares in Hon Hai gained 0.34 percent to close at NT$87.30 on the Taiwan Stock Exchange Wednesday. ( By Chung Jung-feng and Frances Huang)

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