In what could be a leading indicator for Apple Inc's AAPL performance in the holiday quarter, its Taiwanese contract manufacturer Hon Hai Precision Industry Co., Ltd.-ADR HNHPF reported strong results for the three months ended December 2020.
What Happened: Revenue for December came in at 713.8 billion New Taiwanese dollars ($25.52 billion), representing a 4.76% month-over-month increase and a steeper 32.2% year-over-year jump, Hon Hai said in a filing with the Taiwanese stock exchange.
For the three months ending in December, revenues were at 2 trillion New Taiwanese dollars ($71 billion), based on monthly revenues reported for October and November.
This marked a 55.6% quarter-over-quarter increase and 15.5% year-over-year growth.
The quarterly revenues exceed the average estimate of 1.8 trillion New Taiwanese dollars, according to Bloomberg.
Related Link: Exciting Smartphone Offerings To Watch Out For In 2021
Why It's Important: Hon Hai exclusively assembles the iPhone 12 Pro and iPhone 12 Pro Max, the premium products in Apple's iPhone 12 lineup. The supplier's quarterly performance lends credence to expectations that Apple may have seen strong demand for the latest iteration of its flagship product, the iPhone.
iPhone 12 demand in China and the U.S. has been particularly strong, according to Wedbush analyst Daniel Ives.
"The pent up demand in China is driving sales for the latest iPhone 12 5G, which Ives characterized as "the strongest product cycle for Cook & Co. thus far since iPhone 6 in 2014," Ives said in a recent note.
Related Link: Foldable Apple iPhone Coming In 2022: Report
Photo courtesy of Apple.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
