Hon Hai revenue sets August record

SUPPLY-CHAIN FEARS::The company’s shares dropped despite the favorable results after US President Donald Trump urged Apple to move its production bases home

By Ted Chen  /  Staff reporter

Tue, Sep 11, 2018 - Page 12

Hon Hai Precision Industry Co (鴻海精密), a key assembler of Apple Inc’s iPhones, yesterday reported its highest monthly revenue for the month of August amid increased production of the devices in preparation for the US technology giant’s product launch tomorrow.

The world’s largest contract electronics maker reported that revenue last month rose 0.3 percent month-on-month and 25.3 percent annually to NT$396.79 billion (US$12.87 billion).

Total sales in the first eight months of this year rose 14.8 percent annually to NT$2.9 trillion, also a record, the company said.

Consumer electronics made up most of the revenue last month, followed by communications and computing products, it said.

However, Hon Hai shares yesterday fell 3.35 percent to NT$75.1 in Taipei trading after US President Donald Trump in a tweet urged Apple to shift its production to the US for protection from the US-China trade war and “ZERO tax.”

Shares of Pegatron Corp (和碩), which has been tapped as a major assembler for the new 6.1-inch LCD iPhone model, also fell 3.92 percent to NT$58.8, despite sales last month setting a record for August.

Pegatron reported that revenue last month fell 5.52 percent from the previous month, but rose 10.19 percent annually to NT$98.21 billion, with aggregate revenue in the first eight months expanding 13.82 percent to NT$754.24 billion.

The LCD-model iPhone would be more affordable than two other OLED models and is expected to account for more than half of iPhone shipments in the second half of this year, analysts have said.

Wistron Corp (緯創), which is expected to take the smallest portion of iPhone assembly orders among local peers, reported that revenue last month rose 11.2 percent sequentially and 10.7 percent annually to NT$73.78 billion, with total revenue in the first eight months increasing 10.6 percent annually to NT$546.53 billion.

Wistron said that due to a shortage of Intel processors, it has slashed its growth forecast on notebook shipments from a double-digit percentage to single digits, while momentum for its other products remained intact.

Quanta Computer Inc (廣達), an assembler of Apple’s MacBook Air and Apple Watch, said that revenue last month rose 10.79 percent sequentially and 8.85 percent annually to NT$99.32 billion, while revenue during January-to-August period fell 3.49 percent annually to NT$618.12 billion.