Hon Hai Precision Industry Co. reported its highest-ever October sales Monday, with client efforts to boost global consumption through new product launches credited for the iPhone assembler’s performance.
In a statement, the world’s largest contract electronics maker, known as Foxconn on the global markets, said it posted NT$776.58 billion (US$24.16 billion) in consolidated sales in October, a 40.97 percent increase compared with a year earlier.
However, the October sales fell 5.56 percent from September’s NT$822.32 billion in the wake of a relatively high comparison base over the same period of last year.
The year-over-year sales surge came after Apple Inc., which accounts for about 40 percent of Hon Hai’s total sales, released the latest iPhone 14 series in mid-September.
Hon Hai is reportedly serving as the sole assembler of the flagship iPhone 14 Pro and iPhone 14 Pro Max models, demand for which has been stronger than Apple’s iPhone 14 and iPhone 14 Plus.
Hon Hai said it had also benefited from solid global demand for servers and recorded double-digit year-over-year sales growth in October for its computing, smart consumer electronics, and cloud and networking products.
In addition, its electronics component and other devices division also posted a year-on-year increase in sales in October, Hon Hai said.
On a month-on-month basis, Hon Hai said that computing products enjoyed double-digit growth as clients continued to place orders for cloud and networking products to meet rising demand for servers.
In the first 10 months of 2022, Hon Hai’s consolidated sales saw a year-over-year increase of 16.89 percent to hit a record NT$5.44 trillion, according to the company.
During the 10-month period, Hon Hai said cloud and networking, smart consumer electronics, and computing products posted double-digit growth in sales, while shipments of electronics components and other products also rose significantly.
With China’s zero-COVID policy sparking lockdowns in part of Hon Hai’s Zhengzhou complex, the company on Monday downgraded the predications laid out in its previous fourth-quarter forecast.
Hon Hai’s Zhengzhou complex is reportedly in charge of rolling out iPhones, while its Shenzhen compound is engaged in development and new product introduction (NPI) for iPhones.
At the end of October, Hon Hai said the situation in its Zhengzhou complex was under control with the help of local authorities.
Hon Hai has scheduled an investor conference for Nov. 10, with analysts suggesting that the top item of discussion will be the possible impact on iPhone 14 production of lockdowns in Zhengzhou.
Source: Focus Taiwan News Channel