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Hon Hai Reports Record Breaking April due to the iPhone 6

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It's being reported by a Taiwan news site today that sales of Hon Hai, the world's largest contract electronics maker, hit their highest level recorded for the month of April with analysts attributing the strong showing to an increase in shipments of consumer electronic devices. More specifically, orders for the iPhone 6 and iPhone 6-Plus. 


In a statement, Hon Hai said that it posted NT$352.47 billion (US$11.44 billion) in consolidated sales for April, up 4.19 percent from a month earlier, but up a much higher 19.71 percent from a year earlier, beating a previous market estimate.


The report noted that Hon Hai has secured about 60 percent of the orders placed by Apple for the assembly of the 4.7-inch iPhone 6, while rival Taiwan-based Pegatron has taken the remaining 40 percent. Yet for the 5.5-inch iPhone 6-Plus, Hon Hai serves as the sole assembler.


While Apple's CEO hinted during their most recent Financial Conference call that the iPhone 6's momentum was still ongoing, Taiwan based analysts believe that Hon Hai's cycle is likely to slow down going forward until the next iPhone cycle later this year.


Will Apple surprise the market again with a strong June quarter for the iPhone 6? Only time will tell, but Apple's CFO provided a generous forecast for the June quarter that may support higher than normal iPhone sales for calendar Q2 or Apple's fiscal Q3.


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