Hon Hai February sales down over 30% monthly on fewer working days

Taipei, Due to the reduced number of working days in February, Hon Hai Precision Industry Co., the world's largest contract electronics maker, suffered a more than 30 percent month-on-month plunge in sales that month, according to the company's data.

It showed Hon Hai, an iPhone assembler, posted NT$277.82 billion (US$9.48 billion) in sales in February, down 30.65 percent from a month earlier, as the six-day Lunar New Year holiday in the month reduced the number of working days and affected shipments.

The February figure also fell 4.06 percent from a year earlier.

Hon Hai is not the only Taiwanese manufacturer that saw February sales affected by seasonal factors.

Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, posted NT$64.64 billion in consolidated sales in February, down 18.90 percent from a month earlier.

Hon Hai said its computing device division was the best performer in the company's shipments in February, ahead of its communications device division and consumer electronics division.

In the first two months of this year, Hon Hai's consolidated sales totaled NT$678.42 billion, up 6.85 percent from a year earlier.

Market analysts said while the pace for Apple to place orders to Hon Hai to roll out the premium iPhone X has been slowing down in the first quarter, the Taiwanese manufacturing giant, also the assembler of the iPhone 8 Plus, which has enjoyed solid demand, is expected to see a steady stream of orders from Apple for the iPhone 8 Plus, which will offset the impact from the slower iPhone X sales in the quarter.

Hon Hai is believed to be the sole assembler of the iPhone X, and the manufacturer taking the majority of orders for assembling the iPhone 8 Plus.

In addition, analysts said, Hon Hai is expected to continue to report solid shipments in its computing and communications gadget production divisions so the contract manufacturer could report double digit growth in sales from a year earlier in the first quarter.

According to Apple's latest global supplier chain list, Hon Hai, also known as Foxconn in the global market, and its Hong Kong-listed subsidiary FIT Hon Teng Ltd. are part of the 200 suppliers to the U.S. consumer electronics giant.

Shares of Hon Hai soared 2.80 percent to close at NT$91.90 on the Taiwan Stock Exchange on Friday, outperforming the broader market, where the weighted index ended up 0.38 percent.

The buying was sparked after its subsidiary Foxconn Industrial Internet Co. Ltd. secured approval a day earlier from the China Securities Regulatory Commission to raise 27 billion Chinese yuan (US$4.3 billion) in an IPO on the Shanghai Stock Exchange.

Source: Focus Taiwan News Channel