Hon Hai sales hit August high

09/06/2019 04:30 PM

Taipei, Sept. 6 (CNA) Taiwan-based Hon Hai Precision Industry Co., the world's largest contract electronics maker, saw its sales hitting the highest-ever August level in the company's history, with market analysts attributing the growth to the peak-season effect.

In a statement released Thursday, Hon Hai, a major iPhone assembler, said it posted NT$398.82 billion (US$12.76 billion) in consolidated sales for August, up 0.2 percent from a month earlier and also up 0.51 percent from a year earlier.

It was the sixth consecutive month in which Hon Hai, known as Foxconn in the global market, had recorded a month-on-month increase in revenue.

In the first eight months of this year, Hon Hai's consolidated sales stood at NT$3.01 trillion, up 3.89 percent from a year earlier. The eight-month sales figure also hit a record high.

In August, Hon Hai benefited from a strong showing in its communications device division, followed by computing and consumer electronics gadgets, the company said in the statement.

Hon Hai took advantage of increasing global demand for high performance computing devices, as well as 5G communications equipment during the month, analysts said.

The analysts said Hon Hai is expected to benefit from the peak-season effect for the rest of the third quarter, when Apple Inc., one of the major clients of the Taiwanese supplier, is scheduled to unveil the next-generation iPhones. Apple accounts for more than 40 percent of Hon Hai's total sales.

Last week, Apple announced that it will hold a special event at the Steve Jobs Theater at its headquarters, Apple Park, Sept. 10. While the U.S. consumer electronics giant did not disclose any more details about the event, the market widely anticipates that the company will introduce three new iPhones with upgraded specifications.

The market expects that Apple will introduce a 6.5-inch organic light-emitting diode (OLED) iPhone and another 5.8-inch OLED iPhone, while a 6.1-inch liquid crystal display (LCD) iPhone will be also unveiled.

It is possible that Hon Hai will report more than NT$1.35 trillion in consolidated sales for the third quarter or even as much as NT$1.4 trillion, up more than 15 percent from a quarter earlier, the analysts said.

However, the analysts said the trade tension between the United States and China remain a concern to Hon Hai, as Washington is scheduled to level punitive tariffs on smartphones and notebook computers made in China in mid-December.

Hon Hai currently runs a broad production base in China, with its Zhengzhou plant in Henan Province rolling out iPhones.

(By Chung Jung-feng and Frances Huang)


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