Bloomberg: Hon Hai’s revenue grew 44%, thanks in part to Apple’s iPhones

Demand remains robust as consumers snatch-up devices for at-home work, play and education.

From Debby Wu’s “Hon Hai Revenue Jumps 44% on Stay-at-Home Demand for Gadgets” posted Tuesday:

IPhone assembler Hon Hai Precision Industry Co.’s first-quarter revenue jumped 44% on robust demand for Apple Inc.’s new 5G devices and other gadgets that help consumers stay connected at home during the pandemic.

Revenue in the three months through March rose to NT$1.34 trillion ($47 billion), the Taiwanese manufacturer reported Tuesday, in line with the average analyst estimate. Sales in March climbed to NT$441.2 billion.

The strong showing from the world’s largest contract electronics maker suggests demand for iPhones, gaming consoles and servers remains robust as consumers snatch up devices for remote work, home-schooling and entertainment needs. Companies are also spending on technology, expanding data-center infrastructure to better serve customers’ online activities.

My take: More wind at Apple’s back.

4 Comments

  1. Jerry Doyle said:
    Oh my! Truck loads of Fuji apples being delivered to a demanding consumer crowd. Now, will WS appreciate such demand when the numbers are announced? Perhaps WS will once it sinks in their thick skulls that this level of consumer demand continues forth in subsequent quarters. The world has changed in how we do our work, in how we carry out long distance learning, continuing education, staff development, medical advisements, shopping and travel. And in the coming months I suspect some clarity on what Apple is doing in producing a car and then; we are off to the races!

    5
    April 6, 2021
  2. Gregg Thurman said:
    Does anyone have a spreadsheet covering past Hon Hai quarterly reports? I’d appreciate a copy.

    2
    April 6, 2021
  3. Michael Goldfeder said:
    Apple products are in demand but WS always wants to tamp down the expected blow out quarterly numbers numbers with some asinine misdirection by saying: “Sales of Macs and iPads were pulled forward and the momentum can’t continue; The Super Cycle isn’t happening; or my favorite; “Apple Stores still remain closed due to the pandemic and that will negatively impact sales for Apple.”

    That being said, you can’t ignore these numbers for the partners that do business with Apple. Or the fact that LG has quit producing hands sets as they can’t compete with Apple and Samsung in that market. My thought is since Apple spent the past two months scooping up shares at $120, that when the quarterly results are announced later this month that the new floor for Apple will be $150. I’m good with that figure.

    5
    April 6, 2021

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