Hon Hai sees annual growth after surprise in Q2

  • By Lisa Wang / Staff Reporter

Hon Hai Precision Industry Co (鴻海精密), a major iPhone assembler, said yesterday that it looks set to grow its sales this year after reporting better-than-expected second-quarter results thanks to a double-digit growth rate in its sales. are cloud-based servers and computing products.

In the April to June quarter, sales of smart consumer electronics — primarily smartphones — exceeded the company’s expectations and grew significantly from a year earlier, Hon Hai said in a statement yesterday.

Revenue grew 7.26 percent quarter-on-quarter and 11.3 percent year-over-year to NT$1.51 trillion (US$50.8 billion) in the quarter, better than the company’s expectations of a nearly flat quarter amid rising inflation that weighed on demand for smart consumer electronics.

Photo: Sam Yeh, AFPO

Last quarter’s results were the best second-quarter numbers in the company’s history, it said.

In May, Hon Hai forecast a slight annual drop in sales this year, as sales of older-generation smartphones tend to be slower than new models launches in the fall.

However, the product transition effect last month caused only a slight decline in smart consumer electronics revenues, Hon Hai said.

Sales last month rose 5.71 percent per month and 31.2 percent per year to NT$526.2 billion, the best result of June.

Smart consumer electronics are the largest revenue contributor to the company.

Aside from market share gains, Hon Hai said resilient supply chain management helped ward off logistics chaos and supply constraints on key components in the past quarter due to China’s COVID-19 restrictions.

With strong sales for the past month and the last quarter, Hon Hai said that “visibility for this quarter is pretty much in line with market expectations, representing significant year-over-year growth.”

“The full-year outlook has also improved, which should be better than the original flat forecast,” it said.

Hon Hai said all four major product categories performed better than expected.

Cloud and networking products, primarily servers, and computing products outperformed other products.

Component sales also grew, thanks to rising demand for electronic parts, the statement said.

In the first six months of this year, combined revenues increased 8.08 percent to NT$2.918 trillion, from NT$2.7 trillion in the same period last year, Hon Hai said.

Cloud and networking product sales grew double-digit in the first half of the year, while sales of computing products and components showed significant annual growth, the company said.

Sales of smart consumer electronics are also up from a year earlier, the company said.

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