DESPITE IPHONE SLUMP:
The Apple assembly partner said it benefited from robust business in its components division in the past one month
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By Chen Cheng-hui / Staff reporter
Hon Hai Precision Industry Co (鴻海精密), which assembles Apple Inc’s iPads and iPhones, yesterday reported that its consolidated revenue last month was the highest in 11 months and had increased 12.86 percent from a month earlier.
Revenue was NT$621.71 billion (US$22.43 billion), up from NT$550.89 billion in October, the company said in a statement.
Last month’s results were in line with market expectations, as the company was gearing up to assemble new iPhone models and other electronics for the year-end shopping season.
Photo: Fang Wei-jie, Taipei Times
Hon Hai is a leading electronics manufacturing service company that primarily manufactures computer hardware, handsets and networking products for major global brands. It has four main business divisions: consumer and intelligent electronics, cloud and networking technology, computing products and components.
Compared with October, Hon Hai said it benefited from robust business at its components division, followed by its consumer and intelligent electronics division, its computing products division and then its cloud and networking businesses.
On an annual basis, revenue was down 8.76 percent, Hon Hai said, adding that its components division reported the highest sales growth, ahead of the cloud and networking, computing products and consumer and intelligent electronics divisions.
The company’s revenue for last month was the second highest on record for November, Hon Hai data showed.
For the first 11 months of the year, revenue totaled NT$5.28 trillion, up 13.67 percent from NT$4.64 trillion in the same period last year and the highest on record for the period.
Last week, Bloomberg News reported that Apple had told suppliers that demand for the iPhone 13 lineup had slowed, suggesting that interest among consumers for new iPhones is declining, which could affect the US company’s suppliers in Asia.
For Hon Hai, uncertainties from tight component supply and the COVID-19 pandemic to competition from Chinese peers would remain in the near term, analysts said.
While the company has been developing electric vehicle, robot and digital healthcare businesses as potential revenue drivers, their contributions would initially be limited because of low visibility and Hon Hai’s huge sales scale, analysts said.
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Source: https://www.taipeitimes.com/News/biz/archives/2021/12/06/2003769070
