IPhone assembler Hon Hai Precision Industry Co’s (鴻海精密) first-quarter revenue jumped 44.49 percent on robust demand for Apple Inc’s new 5G devices and other gadgets that help consumers stay connected at home during the COVID-19 pandemic.
Revenue in the three months through last month rose to NT$1.34 trillion (US$47.04 billion), from NT$929.68 million a year earlier, but dropped 33.1 percent from a quarter earlier, the firm reported yesterday.
The results were in line with analysts’ average estimates.
Photo: Kin Cheung, AP
Sales for last month climbed 9.8 percent month-on-month and 26.91 percent year-on-year to NT$441.22 billion, the highest for March in the company’s history.
The strong showing from the world’s largest contract electronics maker suggests demand for iPhones, gaming consoles and servers remains robust as consumers snap up devices for remote work, home schooling and entertainment needs. Companies are also spending on technology, expanding data center infrastructure to better serve customers’ online activities.
However, Hon Hai late last month said that component shortages could persist until next year and affect less than one-10th of its shipments, amplifying concerns that a global chip crunch could extend well beyond this year.
Shares of Hon Hai yesterday rose 0.82 percent to close at NT$122.5 in Taipei trading. They have gained 57.66 percent over the past six months as the company announced its plans to venture into the electric vehicle business, signing manufacturing deals with partners such as Byton Ltd (拜騰) and Fisker Inc.
Annual shipments of Hon Hai’s electric vehicles might reach 1.1 million units, or about 10 percent of the global share, by 2025, Morgan Stanley estimated last month.
The company’s auto businesses could generate US$35 billion in revenue by then, said analysts, including Sharon Shih (施曉娟) of Morgan Stanley.
Additional reporting by staff writer
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