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Hon Hai posts highest ever July sales

Hon Hai posts highest ever July sales

Taipei, Aug. 11 (CNA) Hon Hai Precision Industry Co. (??), the world's largest contract electronics maker, has posted its highest ever sales for the month of July, according to a filing to the Taiwan Stock Exchange. Analysts attributed the strong showing to a year-on-year increase in shipments in consumer electronics gadgets during the month, while communications and computer devices stayed little changed from a year earlier. Hon Hai posted consolidated sales of NT$312.19 billion (US$9.76 billion) in July, up 19.97 percent from a year earlier but down 2 percent from a month earlier, the statement said. In the first seven months of the year, Hon Hai's consolidated sales totaled about NT$2.30 trillion, up 13.67 percent from a year earlier. Analysts said Hon Hai could see its sales growth pick up month by month in the second half of this year as the global high-tech industry enters its traditional peak season. They said Hon Hai's growth momentum will become more evident starting in September because of Apple Inc.'s expected launch of the next generation iPhone that month. Analysts said Hon Hai may post higher sales in the third quarter than in the previous quarter, and the fourth quarter is expected to be the company's revenue peak for the year. In the April-June period, Hon Hai's consolidated sales totaled NT$972.62 billion. A KGI Securities research note said Hon Hai is expected to secure all of Apple's orders to assemble the new 5.5-inch iPhone model and 60 percent of the orders for the new 4.7-inch iPhone model.
Pegatron Corp. (??), another Taiwan-based assembler, is expected to take the remaining 40 percent of the orders for the 4.7-inch model. Media in China cited industry sources as saying that Hon Hai has launched a massive recruiting drive at its plant in Zhengzhou to boost its workforce to meet rising demand from Apple. The Hon Hai Group and SK Holdings of South Korea, meanwhile, have agreed to acquire a 55.17 percent stake in Hong Kong-listed electronics maker Daiwa Associate Holding Ltd. for HK$276 million (US$35.38 million). The two companies teamed up with each other to set up a joint venture -- FSK Holding Ltd. -- to make the acquisition, which the Hon Hai Group is expected to use to penetrate the booming Internet of Things market. The IoT refers to devices of all types, such as security monitors, vacuum cleaners and mobile phones, connected to the Internet and to each other to create a more interconnected user experience. (By Jalen Chung and Frances Huang)


Updated : 2021-09-27 02:24 GMT+08:00