Hon Hai Precision Industry Co (鴻海精密) yesterday posted a smaller-than-expected monthly revenue decline of 4.13 percent for last month as China’s COVID-19 restrictions did not exert heavy pressure on the iPhone maker’s production.
Revenue last month fell to NT$486.5 billion (US$16.49 billion) from NT$507.4 billion in March, supported by a double-digit percentage growth in its cloud-based and networking products business, Hon Hai said in a statement.
Last month’s result was the second-strongest April revenue in the company’s history after it posted NT$500.49 billion in April last year, meaning revenue shrank 2.8 percent year-on-year.
Photo: Nicky Loh, Reuters
In the first four months of this year, Hon Hai’s revenue rose 2.76 percent to NT$1.89 trillion from NT$1.84 trillion in the same period last year, the highest for the four-month period in the company’s history, it said.
Hon Hai attributed a double-digit percentage expansion in its cloud-based networking business to robust growth during the January-April period.
Computing products and components, and other products also delivered significant growth, it said.
Hon Hai said that the COVID-19 pandemic “caused different impacts on supply chains.”
“However, our current visibility for the second quarter is still roughly in line with market expectation,” it said.
“Given that the pandemic situation is changing rapidly, coupled with swing factors such as the geopolitical situation and inflation, we need to closely monitor the impact of supply chain changes on market supply and demand,” it said.
Hon Hai, also known as Foxconn Technology Group (富士康科技集團), said that production was not affected by China’s COVID-19 restrictions, as its Shenzhen and Zhengzhou factories are allowed to operate normally under a closed-loop scheme, with employees living and working on company campuses.
However, TF International Securities (天風國際證券) analyst Kuo Ming-chi (郭明錤) wrote on Twitter that “June-August is critical for ramping new iPhone production. If COVID-19 related movement curbs aren’t removed before June, Foxconn’s Zhengzhou iPhone production capacity, likely including iPhone 14, may still be affected by logistics and workforce allocations.”
Hon Hai is scheduled to release detailed financial figures for last quarter and update its business outlook during a quarterly investor conference on Thursday next week.
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