Hon Hai Precision Industry Co (鴻海精密), a major iPhone assembler, yesterday said it looks to grow its revenue this year after reporting better-than-expected results for the second quarter thanks to double-digit percentage growth in sales of its cloud-based servers and computing products.
In the April-to-June quarter, revenue from smart consumer electronics — mainly smartphones — surpassed the company’s expectations, growing significantly from a year earlier, Hon Hai said in a statement yesterday.
Revenue expanded 7.26 percent quarter-on-quarter and 11.3 percent year-on-year to NT$1.51 trillion (US$50.8 billion) last quarter, beating the company’s expectations of an almost flat quarter amid rising inflation that weighed on demand for smart consumer electronics.
Photo: Sam Yeh, AFP
Last quarter’s results were the best second-quarter figures in the company’s history, it said.
Hon Hai in May predicted a slight annual decline in revenue this year, as sales of older-generation smartphones usually slow down ahead of new model launches in the fall.
However, the product transition effect last month caused only a mild decline in revenue from smart consumer electronics, Hon Hai said.
Revenue last month soared 5.71 percent monthly and 31.2 percent annually to NT$526.2 billion, the company’s best June result.
Smart consumer electronics is the biggest revenue contributor to the company.
Aside from market share gains, Hon Hai said resilient supply chain management last quarter helped it fend off logistics chaos and key component supply constraints due to China’s COVID-19 restrictions.
With strong sales figures for last month and last quarter, Hon Hai said that “visibility for this quarter is pretty much in line with market expectations, representing significant growth on a year-on-year basis.”
“The outlook for the full year has also improved, which should be better than the original flattish expectation,” it said.
Hon Hai said all four major product categories performed better than expected.
Cloud and networking products, primarily servers, and computing products outshone other products.
Revenue from components also grew, benefiting from rising demand for electronic parts, the statement said.
In the first six months of this year, combined revenue climbed 8.08 percent to NT$2.918 trillion from NT$2.7 trillion in the same period last year, Hon Hai said.
Revenue from cloud and networking products expanded at a double-digit percentage in the first half of the year, while sales of computing products and components reported significant annual growth, the company said.
Sales of smart consumer electronics also rose from a year earlier, it said.
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