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Hon Hai Q4 sales could top NT$1.5 trillion

Hon Hai Q4 sales could top NT$1.5 trillion

Taipei, Oct. 10 (CNA) Hon Hai Precision Industry Co. (??), the world's largest contract electronics maker, is expected to see its sales growth pick up in the fourth quarter of this year and post more than NT$1.5 trillion (US$45.59 billion) in revenue on the back of orders placed by Apple Inc., market analysts said Saturday. Such optimism followed Apple's launch of its latest iPhone models -- the 4.7-inch iPhone 6s and the 5.5-inch iPhone 6s Plus -- in September. Sales of the globally popular gadgets could push Hon Hai's fourth quarter earnings to the peak for this year, analysts said. Since the newest iPhones have gone on global sales last month, Hon Hai posted the highest ever third quarter sales during the July-September period, breaching NT$1 trillion. And with purchases of iPhones accelerating, Hon Hai, which generates more than 40 percent of its total sales from Apple, could continue to benefit from such an uptrend in the fourth quarter, analysts said. In the third quarter, Hon Hai, an assembler of iPhones and iPads, recorded NT$1.07 trillion in consolidated sales, up 9.6 percent from a quarter earlier after production of the latest iPhones in the Taiwanese firm's Zhengzhou and Shenzhen complexes grew at an apparently fast pace in mid- to late August. In September alone, Hon Hai posted NT$460.9 billion in consolidated sales, up 57.3 percent from a month earlier and also up 10.95 percent from a year earlier. The latest monthly sales were the highest level for the month of September ever recorded in Hon Hai's history. During that month, Hon Hai saw its shipments of consumer electronics products growing fastest on its production lines, while shipments of computing and communications gadgets were also on the rise at a time when international brands launched new products to spark buying. In addition to Apple, Hon Hai has a wide range of customers, such as U.S.-based Dell Corp. and Japan's Sony Corp. Analysts said that Hon Hai has secured all of Apple's orders to assemble the iPhone 6s Plus, while the company has received 50 percent of the U.S. consumer electronics giant's orders to assemble the iPhone 6s. Rival Pegatron Corp. (??) has taken the other half. Apple has reported the highest-ever first weekend sales of the iPhone 6s and iPhone 6s Plus at 13 million units after the models went on the first round of global sales on Sept. 25, up from the 10 million units recorded by their predecessors last year. Analysts said that strong interest in the new iPhones will continue into the fourth quarter and Hon Hai is expected to see its monthly sales peak in December for this year, which will push its sales for the fourth quarter up, to surpass NT$1.5 trillion. On the back of the orders from Apple, Hon Hai is expected to enjoy a more than 10 percent year-on-year increase in sales for the entire year with revenue expected to top NT$4.5 trillion or even hit NT$4.6 trillion, analysts said. (By Jalen Chung and Frances Huang)


Updated : 2021-09-22 19:55 GMT+08:00