Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, on Thursday reported a sequential increase of more than 18 percent in sales for the third quarter of this year after its smart consumer electronics division received a boost from clients unveiling new products.
Market analysts said that because Hon Hai, also known as Foxconn Technology Group (富士康科技集團) internationally, is the major iPhone assembler, the launch of the newest iPhone 15 series by Apple Inc accounted for the sales growth during the July-September period.
Hon Hai is believed to be the major assembler of the popular flagship iPhone 15 Pro and iPhone 15 Pro Max, which command a higher profit margin.
Photo: Reuters
Market analysts estimate Hon Hai assembled between 58 to 60 percent of the total iPhone 15 models for Apple.
In the third quarter, Hon Hai posted NT$1.54 trillion (US$47.82 billion) in consolidated sales, up 18.26 percent from the second quarter but down 11.65 percent from a year earlier.
Compared with the second quarter, Hon Hai said sales generated by its smart consumer electronics division, electronic components division and computing division rose in the third quarter, while revenue posted by its cloud and networking division remained little changed.
Hon Hai said the year-on-year decline in sales in the third quarter largely reflected a relatively high base of comparison over the same period last year.
Last month alone, Hon Hai’s consolidated sales rose 60 percent from a month earlier to NT$660.74 billion, which analysts attributed to peak season effects largely from the introduction of the new iPhone 15 models.
However, last month, revenue fell 19.65 percent from a year earlier on weakening global demand for tech gadgets in a slowing world economy, analysts said.
On a month-on-month basis, Hon Hai’s smart electronics and electronic components divisions benefited from the arrival of new products to post higher revenue last month, while its cloud and networking division saw little change in sales and the computing division reported a decline, the company said.
On a year-on-year basis, Hon Hai said its electronic components division posted an increase last month on the back of growing shipments of smart device and automotive components, while sales generated by the computing, smart consumer electronics and cloud and networking divisions fell.
In the first nine months of this year, Hon Hai’s consolidated sales stood at NT$4.31 trillion, down 7.65 percent from a year earlier as all of its major four divisions reported a decline, the company said.
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