Hon Hai Precision Industry Co’s (鴻海精密) revenue last year expanded 10.47 percent annually to a record high of NT$6.62 trillion (US$215.6 billion), the iPhone assembler said yesterday.
The result surpassed the expectations of the company and most market analysts.
The company, also known as Foxconn Technology Group (富士康科技集團) outside Taiwan, attributed the stronger-than-expected growth to robust demand for new consumer smart mobile devices, primarily Apple Inc’s iPhone 14 series, driven by the resumption of normal production at Hon Hai’s plant in Zhengzhou, China, in the fourth quarter of last year.
Photo: Annabelle Chih, REUTERS
Production at the manufacturing facility was disrupted in October when a COVID-19 outbreak caused worker departures and weeks-long unrest.
“The production and operation of the Zhengzhou campus returned to normal in December,” the company said in a statement. “The outlook for the first quarter of 2023 is expected to be roughly in line with market consensus.”
Hon Hai did not provide details about the market consensus, but the January-to-March quarter is usually a slow season for most electronics companies.
The company’s revenue in the first quarter of last year plummeted 26 percent to NT$1.407 trillion from the previous quarter, company data showed.
Hon Hai’s sales surged 14.2 percent to NT$629.3 billion last month from NT$551.09 billion in November last year, with three major product lines registering sequential growth except for computing products, company data showed.
That brought last quarter’s total revenue to NT$1.957 trillion, up 12.06 percent quarter-on-quarter and 3.54 percent year-on-year, the company said.
Hon Hai last month estimated that revenue for last quarter would be little changed from NT$1.89 trillion a year earlier.
By product segment, revenue from smart consumer electronics products last quarter was flat from a year earlier after production at the Zhengzhou campus returned to normal, the statement said.
On an annual basis, revenue from cloud and networking products posted double-digit percentage growth last quarter, benefiting from robust server demand, the company said.
Computing products also posted significant year-on-year growth, thanks to better component supply.
Revenue from components and other products dropped slightly last quarter from a year earlier due to a reduction in non-core businesses, the statement said.
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