Hon Hai's June Sales Top Expectations Amid Strong iPhone 6 Orders

Hon Hai Precision Industry Co., Ltd., Taiwan's biggest ITC subcontractor by revenue, announced consolidated revenue of NT$316.9 billion (US$10.5 billion) in June alone, up  18.3% from the previous month to far exceed  market expectations and hit a new high.

Industry executives associate such brisk June sales with Apple's robust orders placed for iPhone 6 and other new products.

Industry executives originally projected Hon Hai's June revenue to slip from May's NT$267.9 billion (US$8.9 billion) and fail to end its recession from the NT$300 billion (US$10 billion) benchmark for three months in a row due to seasonal factor. The June results beat their expectations, being up 4.06% year on year not to mention the strong surge from the previous month.

Throughout Q2, the company had consolidated revenue of NT$879.4 billion (US$29.3 billion), slipping 0.46% from a quarter earlier due to low season. In H1, 2014, the company's consolidated revenue of NT$1.7 trillion (US$58.7 billion) rose 3.32% YoY.

Industry executives feel Q2 to be the company's weakest quarter for this year, with explosive growth in H2 due to the coming peak season. They project the company's Q3 consolidated revenue to rise 10-15% from the second to exceed NT$1 trillion (US$33.3 billion), with peak sales to likely be in Q4.

Hon Hai executives say that the company's shipments of consumer electronics, computers, and communications equipment all surged in June, with consumer electronics shipments surpassing those in May.

Industry executives say in June many globally big-name vendors of smartphones and tablet PCs including Apple, Amazon, Xiaomi, and Huawei built up inventories, hence driving up orders to Hon Hai, with some of the company's customers delaying May orders to June. (KL)