Hon Hai posts highest-ever sales for August

2018/09/10 21:34:41 fontsize-small fontsize-default fontsize-big
Hon Hai posts highest-ever sales for August

Taipei, Sept. 10 (CNA) Taiwan-based iPhone assembler Hon Hai Precision Industry Co. generated the highest-ever sales for August as global demand for consumer electronics devices was on the rise, data released by the world's largest contract electronics maker showed on Monday.

As the global electronics sector has entered a peak season in the third quarter, Hon Hai, also known as Foxconn in the global market, posted NT$396.78 billion (US$12.88 billion) in consolidated sales in August, up 0.3 percent from a month earlier and up 25.25 percent from a year earlier.

In the first eight months of this year, Hon Hai's consolidated sales totaled NT$2.9 trillion, also a new high for the period, up 14.83 percent from a year earlier, the data indicated.

In a statement, Hon Hai said sales generated by its consumer electronics device operations rose the most in August, followed by sales posted by its communications device operations and its computing device operations.

Hon Hai's August sales report was released after the local equity market closed on Monday. Ahead of the sales data, shares of Hon Hai plunged 3.35 percent to end at NT$75.1, the lowest level in 27 months.

The sell-off came after U.S. President Donald Trump urged Apple Inc. to move its production back to the United States in a bid to avoid the tariffs Washington has imposed and will impose on Chinese goods at a time when trade tensions between the top two economies in the world have been escalating.

Market analysts said Hon Hai is expected to benefit from an increase in orders placed by Apple, which is scheduled to unveil the next generation iPhones in a news conference on Wednesday.

Riding the waves of increasing orders from Apple, analysts said, Hon Hai is expected to post NT$1.15 trillion in consolidated sales for the third quarter and the figure could even reach NT$1.2 trillion, up 7-10 percent from the second quarter.

During the July-August period, Hon Hai's consolidated sales reached NT$792.38 billion. Based on the market estimate, Hon Hai could record at least NT$357.63 billion in sales for September.

The market has widely anticipated Apple will launch three new iPhones on Wednesday: a 6.5-inch OLED version, a 5.8-inch OLED version and a 6.1 LCD version.

A European brokerage said in a research note that Hon Hai is starting to assemble the two new OLED iPhones in September, and is expected to account for 95 percent of the two models' shipments over the next 12 months.

Tech website Appleinsider reported recently that Hon Hai is expected to secure all of the orders to assemble the 5.8-inch OLED iPhones, 80-90 percent of the orders to roll out the 6.5-inch OLED iPhones, and about 30 percent of the orders to make the LCD iPhones.

(By Chung Jug-feng and Frances Huang)

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