Hon Hai revenues climb 13.9% on Apple device demand

Hon Hai revenues climb 13.9% on Apple device demand

Hon Hai Precision Industry Co, maker of Apple’s iPhone and iPad devices, has seen a rapid increase in revenues month on month, overcoming a recent Foxconn plant explosion to post revenue growth of 13.9% from May to June.

The Chinese manufacturer saw demand for the iPhone and iPad 2 contribute to sales revenue of NT$228.4 billion, increasing 15,7% year on year. The company ended the second quarter with sales revenue of NT$633.8 billion, up 14.4% from its laest quarter, according to the company’s latest financial filing.

Hon Hai’s performance has surprised analysts, who believed the impending release of a new iPhone and iPad device later in the year would result in a cooling of consumer interest. However, Hon Hai totalled NT$1.1879 trillion in combined revenue for the first half of this year, an increase 27.83% from a year earlier, helped by the company’s ability to resume shipments from its damaged Foxconn plant, where an explosion forced the factory to temporarily cease iPad production.

The iOS device maker is expected to continue its success into the third quarter, with it expected to begin shipping new iPad and iPhone devices ready for Apple’s September launch.

Despite increased sales, Hon Hai has struggled to turn revenues into profit, citing high manufacturing costs and factory relocations for declining profits in the first quarter of 2011. Company chairman Terry Guo believes the company will start to benefit from relocation and manufacturing changes in 2012.

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