Hon Hai November sales hit high for this year

Hon Hai Precision Industry Co. (??), a major assembler of iPhones and iPads for Apple Inc., said Friday that its sales in November hit a high for this year, but marked a more than 7 percent drop compared to last year.

In a statement, Hon Hai said it posted NT$480.67 billion (US15.12 billion) in consolidated sales in November, up 1.85 percent from a month earlier, but down 7.12 percent from a year earlier.

Analysts said that Hon Hai has benefited from the debut of the 4.7-inch iPhone 7 and 5.5-inch iPhone 7 Plus, which went on global sale in September, although the latest iPhone models failed to top its predecessors launched last year in terms of sales.

The slump compared to last year was due largely to a global slowdown in consumer purchases of information communications technology products as many users feel satisfied with the quantity and quality of the computers and smartphones they already have.

Reflecting this trend, in the first 11 months of this year, Hon Hai's consolidated sales stood at NT$3.91 trillion, down 4.08 percent from a year earlier.

Due to global sales of the iPhone 7 and iPhone 7 Plus, Hon Hai's production in its factories in Zhengzhou in China's Henan province and Shenzhen in Guangdong province remained at high levels, Hon Hai said.

In addition, sales posted by smartphone maker FIH Mobile Ltd. (???), in which Hon Hai holds a 70 percent stake, remained solid due to orders placed by its Chinese clients.

According to Hon Hai, sales in its consumer electronics devices for November moved higher from a month earlier, while sales in its communications devices stayed unchanged.

The world's largest contract electronics maker said that sales in its computing devices for November trended lower than October.

Analysts said that although Hon Hai's sales for December could lag behind revenue seen in November as the peak of the fourth quarter has passed, the company's revenue for the October-December period could rank the highest quarterly level for this year and could range between NT$1.35 trillion and NT$1.4 trillion, up 25 percent to 30 percent from the third quarter.

Source: Focus Taiwan News Channel