Mon, Nov 13, 2017 - Page 16 News List

Consumer devices lift Hon Hai close to two-year high

Staff writer, with CNA

Hon Hai Precision Industry Co (鴻海精密) reported on Friday that its sales last month reached their highest monthly level in nearly two years, driven by strong growth in its consumer electronics business.

Consolidated sales totaled NT$485.46 billion (US$16.09 billion) last month, up 7.6 percent from a month earlier and up 2.87 percent from a year earlier, the company said in a statement.

Analysts said the increase in sales resulted largely from an increase in orders placed by Apple Inc, which unveiled its latest iPhone models — the iPhone 8, the iPhone 8 Plus and the iPhone X — in September.

According to Hon Hai, its consumer electronics operations last month saw sales rising more rapidly than its computing device and communication device operations.

Due to strong global demand for the iPhone X, Hon Hai’s sales are expected to continue to rise for the rest of the year.

Hon Hai’s fourth-quarter sales are expected to rise more than 30 percent from a quarter earlier to between NT$1.4 trillion and NT$1.45 trillion, the highest quarterly figure for this year.

APPLE DEMAND

With demand for the iPhone X rising, a research note by KGI Securities Co (凱基證券) said Hon Hai is expected to shift part of its production for the iPhone 8 Plus to assemble the premium model starting from the end of the fourth quarter.

In the first 10 months of this year, Hon Hai’s consolidated sales rose 1.05 percent year-on-year to NT$3.46 trillion, the company said.

Shares in Hon Hai ended 0.92 percent lower at NT$107.50 on Friday on the Taiwan Stock Exchange.

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