Record March quarter queued up, says top Apple supplier

From Debby Wu’s “IPhone Assembler Hon Hai Expects ‘Unprecedented’ First Quarter” posted Sunday on Bloomberg:

Key iPhone assembler Hon Hai Precision Industry Co. may achieve an “unprecedented” performance in the first quarter, according to Chairman Young Liu.

“Our performance in the first quarter may surpass how we did in the past few years, and it is likely that some staff at key sites will only get two days off during the lunar new year holidays,” Liu said in prepared remarks for the company’s annual party on Sunday…

In addition to being a key manufacturing partner to Apple Inc., the Taiwanese company also makes gadgets for other global brands including Dell Technologies Inc., Sony Group Corp. and Nintendo Co.

My take: Notice how deftly Liu slipped in the bad news about those vacation days.


  1. Robert Paul Leitao said:
    Supply constraints are beginning to ease and gradually more capacity is becoming available. Lunar New Year is February 1st (as David Emery reminded us in a comment on a different blog post today) so there’s likely been continued production at feverish rates. Apple has adroitly allocated inventory supplies and available components to products and geographies based on demand. This is good news for Hon Hai and it coincides with upgrades by analysts on Apple’s chip supplier TSMC. I believe at this time it’s sentiment driving market prices. Depending on how the market reacts to this week’s results and corresponding froward guidance from Apple, it may create a long-term buy opportunity. Please do your own research and make thoughtful and informed investment decisions.

    January 23, 2022
  2. Michael Goldfeder said:
    But what about the law of large numbers? Rod and Toni will need to weigh in on this action. Could their thesis that has been wrong for the past several years continue to be wrong?

    January 23, 2022
    • Robert Paul Leitao said:
      Michael: If Toni and Rod ever went bullish on Apple, after the rousing capitulation party I’d get worried it was a contrarian indicator. Let’s figure out the party location first. Zoom has been fun (at times) but it’s time to get back to normal until we can meet somewhere cool in the metaverse. For folks who haven’t joined our Slack group yet (free for subscribers!), we are looking at dates and locations for a gathering. Right now the preference is for an event in the Silicon Valley area and close to Apple’s HQ. No rush yet, we’re letting the pandemic burn itself out…

      January 23, 2022
    • David Emery said:
      The ‘law of large numbers’ that has me worried is how many ANALysts are now bullish on AAPL.

      January 23, 2022

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