Sat, Feb 06, 2016 - Page 13 News List

Hon Hai’s annual, monthly sales fall by double digits

THE WAITING GAME:Analysts expect sales to languish in the first half of this year, before they receive a boost from the release of Apple’s new iPhone in the second half

By Lauly Li  /  Staff reporter

Hon Hai Precision Industry Co (鴻海精密), one of the main assemblers of Apple Inc’s iPhones, yesterday reported a double-digit percentage decline in annual sales as well as those for last month, citing a slow season.

Sales for last month was NT$337.6 billion (US$10.17 billion), plummeting 14.74 percent from NT$396 billion a year earlier and 17.59 percent from the prior month’s NT$409.65 billion, according to the firm’s filing with the Taiwan Stock Exchange.

“Due to a slow season, sales of Hon Hai’s three main product lines — consumer electronics, computing and communication — all fell last month from a month earlier,” Hon Hai said in a statement.

Analysts said Hon Hai’s annual decline in revenue last month was mainly due to a high comparison base last year, adding that they expect the company’s business to grow significantly in the second half of this year after Apple’s launch of its next generation of iPhone handsets.

Prior to Hon Hai’s release of last month’s figures, Yuanta Securities Investment Consulting Co (元大投顧) said the company’s iPhone shipments would drop 29.9 percent annually in the first half of this year, but would grow 13.4 percent year-on-year in the second half.

Yuanta forecast seasonal factors would cause the company’s sales to shrink 8.65 percent annually and 35.22 percent quarterly to NT$926.33 billion this quarter.

Largan Precision Co (大立光), the main supplier of Apple’s iPhone camera lenses, also saw a drop in annual and monthly revenues last month due to fewer shipments caused by a slow season.

Sales were NT$3.22 billion last month, down 19.9 percent from NT$4.02 billion a year earlier and 18.89 percent less than the NT$3.97 billion in the prior month, the company said.

Largan chief executive officer Adam Lin (林恩平) last month said he predicted that demand this quarter would be softer than the first quarter of last year.

Capital Investment Management Co (群益投顧) said in a note on Jan. 21 that a slow season for iPhone products would weigh significantly on Largan’s performance this quarter, forecasting Largan’s revenue to fall 36.16 percent quarterly to NT$9.86 billion.

Catcher Technology Co (可成科技), which supplies metal casings for iPhones, saw a 4.48 percent annual increase in sales to NT$6.23 billion last month, but a decline of 9.84 percent on a monthly basis.

Catcher chairman Allen Horng (洪水樹) on Jan. 6 told investors that as the market has been volatile recently, the company expects revenues in the first half of this year to be flattish from the same period last year.

Horng said the first quarter is likely to be a trough for component suppliers, adding that he foresees the growth to gradually improve in the remainder of the year.

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