Jul 11, 2017 Legal Comments Off on Hon Hai June sales return to NT$300 billion mark
Taipei--Taiwan-based Hon Hai Precision Industry Co. (??), the world's largest contract electronics maker, saw sales for June return to the NT$300 billion (US$9.8 billion) mark on the back of an increase in shipments for its three major product lines in the month.
Hon Hai, an assembler of iPhones and iPads, posted NT$315.14 billion in consolidated sales for June, up 12.61 percent from a month earlier and also up 3.32 percent from year-on-year.
It was the first time Hon Hai has posted monthly sales that have increased month-on-month and year-on-year since March, when revenue rose 18 percent from a month earlier and grew 0.61 percent from a year earlier.
The manufacturing giant said that shipments of its three major product lines -- communications, consumer electronics and computing devices -- moved higher in June, which helped the company recover from a poor performance in May.
In May, Hon Hai's consolidated sales fell 13.30 percent from a month earlier and dropped 5.27 percent from a year earlier at NT$279.85 billion.
Market analysts said that Hon Hai's June sales data impressed many investors, defying conventional wisdom that the second quarter is the slow season for the electronics sector, having secured a large number of orders for the assembly of consumer electronics products.
However, due to the slowdown in May, Hon Hai still posted a 5.9 percent sequential decline in sales for the second quarter, which totaled NT$917.77 billion. The second quarter figure was also down 0.55 percent from the previous year.
In the first six months of this year, Hon Hai's consolidated sales rose 0.73 percent from a year earlier to NT$1.89 trillion.
Analysts said that Hon Hai's sales growth will pick up in the third quarter and continue into the fourth quarter after Apple Inc. unveils the next generation iPhone. This year is the 10th anniversary of the iPhone and the new model, which could come with a significant upgrade in specifications, is expected to trigger a major wave of replacements.
A European brokerage said in a research note that new iPhone models with a LCD display are scheduled to hit the global market in late September and models with an advanced organic light-emitting diode (OLED) screen in late October.
On the back of the June sales growth and hopes over the launch of the new iPhone, shares in Hon Hai rose 2.60 percent to close at NT$118.50 on the local main board on Tuesday.
Source: Focus Taiwan News Channel