iPhone assembler Hon Hai Precision Industry Co., the world’s largest contract electronics maker, reported on Tuesday that its September sales hit a new monthly record high on the back of its clients’ efforts to launch new products to boost shipments.
In a statement, Hon Hai, also known as Foxconn on the global market, said it posted NT$822.32 billion (US$25.90 billion) in consolidated sales in September, up 83.18 percent from a month earlier and also up 40.39 percent from a year earlier.
Hon Hai said the company largely benefited from higher global sales of consumer electronics products in September, while market analysts attributed the sales growth to the presence of the newest Apple iPhone 14 series, which went on global sale in the month.
Apple Inc. recently unveiled its four latest iPhone models: the iPhone 14, iPhone 14 Plus, iPhone 14 Pro, and iPhone 14 Pro Max. Hon Hai is believed to serve as the sole assembler of the flagship iPhone 14 Pro and iPhone 14 Pro Max, which have enjoyed a warmer reception than the iPhone 14 and iPhone 14 Plus in the market.
In addition to its consumer electronics division generating higher sales, Hon Hai said the company also saw a double-digit month-on-month and year-on-year increase in shipments of cloud-based products and servers in September, despite China’s zero tolerance COVID-19 policy.
In the third quarter, Hon Hai’s consolidated sales rose 15.62 percent from the second quarter to a new quarterly high of about NT$1.75 trillion, which also grew 24.4 percent from a year earlier, the company said.
In the three-month period, consumer smart electronics products, cloud and networking products posted double-digit sequential growth from the second quarter, while computing and electronics products also posted growth in the quarter, Hon Hai said.
In the first nine months of this year, Hon Hai generated NT$4.66 trillion in consolidated sales, up 13.66 percent from a year earlier with the cloud and networking division and consumer smart electronics operations posting double-digit year-on-year sales growth, Hon Hai added.
Hon Hai has scheduled an investor conference for Nov. 10 to detail its third quarter results.
Q4 outlook
As for the fourth quarter, Hon Hai said it remains cautiously optimistic, saying it will continue to remain alert over the development of inflation, the COVID-pandemic and the global supply chain.
Hon Hai added it has left an earlier forecast unchanged in which it revised its business outlook for 2022 from flattish expectations to growth.
As the company has also intensified efforts to develop electric vehicles in a bid to diversify product mix and push up its profit margin, Hon Hai is scheduled to hold Hon Hai Tech Day on Oct. 18, when the company is expected to introduce new EV prototypes.
The effort to build a wider range of products is being carried out under a “3 plus 3” initiative, which focuses on the development of EVs, robots and digital healthcare, through the application of artificial intelligence, semiconductor and communications technologies.
Source: Focus Taiwan News Channel