Manufacturing News

Hon Hai to Challenge Sales Revenue of NT$3Trillion (US93.5Billion) in 2011

Hon Hai Precision Industry Co. is likely to see its consolidated sales revenue resume an annual growth of over 30% to break the NT$3 trillion mark in 2011, a new-high revenue figure among private enterprises in Taiwan, according to institutional investors.

It is expected Hon Hai will secure orders for 80 million up to 100 million sets of the iPhone smart phone and 40 million sets of the iPad tablet computer from Apple Computer Inc in 2011.

Apple is reportedly to launch its fifth-generation iPhone embedded with eight-mega-pixel digital camera in January 2011. As Apple's largest contract manufacturer of iPhone, Hon Hai will see Apple's orders for iPhone to add over NT$500 billion to its total sales in 2011. At present, the Apple business unit has become Hon Hai's second-largest business subgroup, only behind the Hewlett-Packard business unit which contributes NT$1 trillion to the company's annual sales.

An industry insider analyzes the global shipment for smart phones will exceed 280 million sets in 2010, up 57.3% year-on-year and accounting for 20% of the total shipment for mobile handsets. As Apple has seen an increase in market share, the global shipments of iPhone are very likely to surpass 100 million sets in 2011.

According to an estimate made by the market researcher International Data Corp. (IDC), the global sales of tablet computers will total 12 million units in 2010 and 25 million units in 2011. Hon Hai is expected to benefit from the increased sales of tablet computers in 2011.

Recently, Hon Hai has been expanding production lines in Chengzhou of Henan province, China to fill the increased orders from Apple. To meet the influx of orders for notebook computers, Hon Hai will largely expand production capacity in Chongqing of Sichuan province, China by the end of this year.

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