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Hon Hai sales growth forecast to pick up in September

Hon Hai sales growth forecast to pick up in September

Taipei, Sept. 11 (CNA) Hon Hai Precision Industry Co. (??), an assembler of Apple Inc.'s iPhones and iPads, is likely to see stronger sales growth in September in tandem with the release of the next generation iPhone, analysts said Friday. Boosted by an increase in orders from Apple, Hon Hai, the world's largest contract electronics maker, is likely to recover from a slowdown in sales in August, when its major clients were in a product transition period. On Wednesday, Apple launched its 4.7-inch iPhone 6s and 5.5-inch iPhone 6s Plus, while preorders in the first round of the global sales are scheduled to kick off Sept. 12. The biggest upgrade in the two newest iPhone models is the use of 3D touch screen technology, also known as Force Touch. According to a recent report by KGI Securities, Hon Hai is likely to secure all of Apple's orders to assemble the iPhone 6s Plus and 60 percent of the orders for the iPhone 6s. Pegatron Corp. (??), another Taiwanese contract maker, will gain the remaining 40 percent of orders for the iPhone 6s, the brokerage said. In August, Hon Hai posted NT$292.92 billion in consolidated sales, down 6.17 percent from the previous month, but up 6.48 percent from a year earlier. The manufacturer said shipments of its consumer electronics devices fell in August, while shipments of its communications and computing gadgets registered little change. Nonetheless, Hon Hai reported record sales this year for the month of August. In the first eight months of the year, Hon Hai posted NT$2.59 trillion in consolidated sales, up 12.81 percent from a year earlier. Hon Hai's production bases in Zhengzhou, Henan Province, and in Shenzhen, Guangdong Province are expected to ramp up production this month to handle Apple's orders for the new iPhone, analysts said. They have forecast Hon Hai's third-quarter sales at over NT$1 trillion, a 4-5 percent quarterly increase. In December, Hon Hai's sales are likely to reach a record monthly high for the year, while its fourth quarter sales are expected to range between NT$1.3 trillion and NT$1.5 trillion, analysts said. Meanwhile, Pegatron posted NT$75.78 billion in consolidated sales for August, up 13.41 percent from a month earlier and 16.4 percent year-on-year. In the first eight months of the year, Pegatron's consolidated sales grew 13.27 percent from a year earlier to NT$635.21 billion. Analysts said Pegatron's sales will continue to grow in September on the back of Apple's orders for the new iPhone. (By Jalen Chung, Pan Chi-i and Frances Huang)


Updated : 2021-09-23 14:31 GMT+08:00