Hon Hai Precision Industry Co (鴻海精密) on Thursday reported a record NT$475.099 billion (US$15.86 billion) in consolidated revenue for last month driven by solid demand for cloud and networking devices.
The iPhone assembler, which is known as Foxconn globally, said in a statement that the 13.66 percent year-on-year increase was higher than it had previously estimated, but did not disclose its forecast.
However, consolidated sales in July fell 9.71 percent from June, which Hon Hai attributed to production transition in the smart consumer electronics markets and a subsequent decline in shipments to the month-on-month decline.
Photo: CNA
Hon Hai’s consolidated sales for the first seven months of this year were NT$3.39 trillion, up 8.83 percent from the same period last year.
Sales last month at its cloud and networking division grew by double-digit percentage points from the same period last year, while its electronics component and smart consumer electronics operations also recorded growth, Hon Hai said.
While its consumer electronics and smart product divisions reported a month-on-month drop in sales, demand for the firm’s servers and computing devices remained strong, Hon Hai said.
Strong global demand for servers and computing devices in the first seven months of the year boosted revenue, while its supply chain management efforts also helped, it said.
Strong global demand for smart consumer products in the first seven months benefited its electronics component division, Hon Hai said.
Hon Hai said it remained cautious about demand, as inflation is taking a toll on the global economy and the COVID-19 pandemic is expected to continue to affect the global supply chain.
However, based on current orders, the company is likely to post an increase in sales this quarter compared with the same period last year, when revenue hit a new quarterly high of about NT$1.4 trillion — up 8.8 percent from a year earlier — after Apple Inc launched its iPhone 13.
Market analysts said that as Apple is expected to unveil its next-generation iPhones next month, Hon Hai would ride a wave of strong demand for smartphones this quarter.
Hon Hai is scheduled to hold an investors’ conference on Wednesday to detail its second-quarter results and give guidance for this quarter.
In the second quarter, Hon Hai generated NT$1.51 trillion in consolidated sales, up 11.3 percent from a year earlier and 7.26 percent from a the first quarter.
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