IPhone Demand Drives Q1 Growth For Apple Supplier Foxconn

Apple Inc. AAPL supplier Hon Hai Precision Industry Co., Ltd. HNHPF is riding on the momentum imparted by the strong uptake of the latest iPhone iteration as well as surging demand for consumer electronics.

What Happened: Hon Hai, popularly known as Foxconn, said it expects first-quarter revenues to increase more than 15% year-over-year, Reuters reported, citing a statement from the company.

In the fourth quarter, the company reported 15.5% year-over-year revenue growth to 2 trillion New Taiwanese dollars.

Revenues primarily include contributions from its consumer electronics business, comprising smartphones and smartwatches.

Related Link: Fiat Chrysler In Talks With Apple Supplier Foxconn To Make EVs In China

Revenues from cloud and computing products are expected to rise about 10%, the company said.

See also: How To Buy Apple Stock

In a statement, Foxconn said Thursday its consolidated revenues for February increased 84.81% year-over-year to 401.89 billion New Taiwanese dollars ($14.44 billion). Month-over-month, revenues were down 19.66%.

Cumulative revenues for the Jan-Feb period were at 902.11 billion New Taiwanese dollars, up 55% from the same period last year.

Why It's Important: Foxconn's performance can be considered a leading indicator for iPhone demand, and therefore its positive outlook for the first quarter bodes well for Apple. The tech giant is expected to report another blockbuster quarter following a strong showing in its seasonally strong December quarter.

Foxconn has recently shifted its focus to the EV sector and has struck multiple partnerships with the likes of Fisker Inc. FSR and Geely Automobile Holdings Limited GELYF.

Related Link: Potential Partners For An Apple Car Grow In Number, With Nissan The Latest To Express Interest

(Photo: Shiwa ID via Unsplash)

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