Taiwan-based manufacturing giant Hon Hai Precision Industry Co., Ltd. (Hon Hai Precision) said on Monday that its sales rose more than 13% month-on-month last month, mainly due to strong purchases of smart home appliances.
iPhone assembly company Honghai, also known in the global market as Foxconn, said in a statement that its consolidated sales were NT$460.13 billion (US$14.66 billion), an increase of 13.48% month-on-month, but last month’s sales were lower than a year earlier. It was announced that there was a decrease of 20.93% compared to the previous year. The previous year was in the midst of a global economic downturn.
Still, Honghai, the world’s largest contract electronics manufacturer, said its latest monthly sales reached the second-highest level for January, just behind the NT$660.4 billion recorded in January 2022.
Photo: Anne Wang, Reuters
Hon Hai announced that last month’s sales increased from the previous month due to strong orders for smart home appliances. Analysts said most of the orders came from Apple Inc., as the U.S. electronics giant rebuilds its iPhone inventory to meet demand.
Hon Hai said last month that computing products also achieved strong month-on-month growth, but month-on-month sales growth in cloud-based products was offset by weakness in network products.
Furthermore, sales of the electronic components sector decreased month-on-month last month, but the reason was that the comparison base in December was relatively high as a result of a one-time non-routine engineering evaluation, Honghai said. said.
Hon Hai announced that compared to the same month last year, sales of electronic components, cloud and networking products recovered significantly last month, but sales of computing products decreased due to weak demand for PCs.
The company’s smart home appliances business also saw a decline in sales last month, as the lockdown was lifted on the premises of Honghai in Zhengzhou, Henan Province, China due to the impact of the new coronavirus infection, and the comparison basis compared to the same period last year was relatively high. This was a decrease compared to the previous year. The state where the iPhone was manufactured.
Looking ahead, Honghai said the business will enter a slow period in the first quarter of this year and its business will be affected by the season compared to the previous quarter.
Hon Hai’s sales are expected to decline in the January-March period compared to the same period last year, reflecting the restart of production in Zhengzhou.
Honghai’s consolidated sales in the first quarter of last year were NT$1.85 trillion, an increase of 20% from the previous quarter, but a decrease of 5.4% from the same period last year.
Honghai has scheduled an investor meeting on March 14 to detail fourth-quarter results and provide guidance for the current quarter.
Comments are moderated. Please keep your comments relevant to the article. Speech containing abusive or obscene language, personal attacks of any kind, or propaganda will be removed and the user will be banned. The final decision is at the discretion of Taipei Times.