To activate the text-to-speech service, please first agree to the privacy policy below.
Taipei, July 6 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. on Friday reported its highest-ever sales for the second quarter, up more than 19 percent from a year earlier, attributing the growth to an increase in shipments of artificial intelligence related devices.
In a statement, iPhone assembler Hon Hai, also known as Foxconn on the global markets, said it posted a better than expected NT$1.55 trillion (US$47.83 billion) in consolidated sales in the April-June period, up 19.12 percent from a year earlier.
Second quarter sales also rose 17.37 percent from a year earlier, the company said.
Hon Hai said clients placed more orders for its cloud-based gadgets in the current AI boom in the second quarter, boosting sales on a year-on-year and a sequential basis at its cloud and networking division.
Its computing division benefited from the debut of new products by international brands posting higher sales from a year earlier as well as from a quarter earlier in the second quarter, while its electronic components division reported strong sales growth year-on-year and quarter-on-quarter due to solid demand for key components and automotive electronics, Hon Hai said.
Bucking the upturn, sales posted by the smart consumer electronics division was little changed in the second quarter, Hon Hai added.
In June alone, Hon Hai’s consolidated sales stood at NT$490.73 billion, down 10.8 percent from May but up 16.07 percent from a year earlier. The latest monthly sales were the second highest for June, trailing only the NT$526.2 billion recorded in June 2022.
Hon Hai said its cloud and networking division reported solid growth, while the computing, electronic components and smart consumer electronics divisions suffered a decline in sales in June.
In the first six months of this year, Hon Hai generated NT$2.87 trillion in consolidated sales, up 3.92 percent from a year earlier on the back of an improvement in the four major businesses.
Looking ahead, Hon Hai said, the second half of the year is a traditional peak season in the high tech sector and sales momentum is expected to grow gradually.
Hon Hai forecast it will enjoy year-on-year and quarter-on-quarter sales growth in the third quarter.
The company has scheduled an investor conference for Aug. 14 to detail the second quarter results and give guidance for the third quarter as well as for 2024 as a whole.
Meanwhile, smartphone camera lenses maker Largan Precision Co., another major supplier to Apple Inc., posted NT$4.04 billion in consolidated sales in June, up 15.9 percent from a month earlier and up 49.8 percent from a year earlier.
Market analysts said the strong showing in June came after an increase in orders placed by Apple, which is expected to unveil the next generation iPhone in September.
In June, Largan’s 20 mega-pixel lenses and higher — which have a higher profit margin — accounted for 10-20 percent of its total sales, with 10-20 mega-pixel lenses making up 50-60 percent, 8 mega-pixel lenses representing less than 10 percent, and products other than camera lenses making up the remaining 30-40 percent, the company said.
Largan said it is possible that shipments will continue to grow in July due to peak season effects.
In the first six month of this year, Largan’s consolidated sales rose about 29 percent from a year earlier to about NT$22.30 billion.
Largan is scheduled to hold an investor conference on July 11 to detail the second quarter results.
