The demand for gadgets drives sales
Hon Hai Precisious Industry Co., a key iPhone assembler, reported a profit that exceeded analysts’ expectations, bolstered by robust demand for new phones from its main customer, Apple Inc.
Analysts expect net income to be 342.4 billion Taiwanese dollars in the third quarter, up from 37 billion Taiwanese dollars in the previous quarter. During this time, sales reached a new high of $ 1.4 trillion. Taiwanese dollars are the currency of Taiwan.
Holiday sales may be hit by the semiconductor crisis
Due to the downturn in consumer electronics and computing, Hon Hai expects its fourth-quarter revenue to fall short of last year’s, indicating that the company would continue to run out of semiconductors.
Last month, Apple predicted that fourth-quarter sales losses may exceed $6 billion.
Hon Hai is making strenuous efforts to lessen its dependency on Apple orders for device assembly.
The corporation is attempting to grow into emerging EV markets, and in October agreed to buy Lordstown Motors Corp., a pickup plant in Ohio, for $ 280 million.
Hon Hai wants to start developing an electric car plant in Thailand and launch an electric vehicle project in the Middle East in the second half of 2022.
The company’s status as a genuine contender for Apple’s hidden automobile project is bolstered by these projects.