km0km technology news (text/Li Taihong), just before Apple is about to publish the latest iPhone product in 2019, Apple main OEM Hon Hai also announced its revenue figures, and it still maintained a stable and slight growth. This is also the number that has been stable in the off-season operation from March to August in the past two years, indicating that Hon Hai has successfully got rid of the influence of Apple .
According to previous examples, Apple accounts for about 50% of Hon Hai's annual revenue. In other words, the off-peak season of Apple 's operation will also directly affect Hon Hai's performance. Taking 2017 as an example, in the six months from March to August, Hon Hai's lowest revenue was NT$279.8 billion in May (the same unit below), the highest was NT$341.6 billion in March, and in other months it was about NT$310-320 billion, with a 22% fluctuation in the high and low difference.
However, by 2018, Hon Hai's revenue performance from March to August was the lowest, with a low of 343.9 billion yuan in April and a high-low rate of 396.7 billion yuan in August. The fluctuation in the high and lows has shrunk to 15%, and it is even growing month by month from April to August. This year, Hon Hai's revenue from March to August increased steadily, from 376.6 billion yuan to 398.8 billion yuan. Not only did the fluctuation of the high and lows only 5%, but it also increased slowly month by month.
off-season revenue is high. Communications and non-Apple are the key
is roughly classified according to Hon Hai's product revenue, including communications, consumption and computing. Among them, Apple iPhone is mainly classified as consumer products. According to the revenue performance provided by Hon Hai, in the six months from March to August this year, Communications ranked first among the three major products in May and August. As for the other 4 months, although consumption performance was also strong, it is worth noting that during the off-season of , Apple iPhone, Hon Hai's mobile phone revenue has continued to grow steadily, proving that Hon Hai's mobile phone product portfolio has undergone a considerable qualitative change.
Under the impact of the trade war, the global smartphone environment this year is quite chaotic, especially the Sino-US trade war has not yet achieved results. In particular, Huawei has become a key mainland manufacturer that was killed. It was reported that Hon Hai also took the initiative to reduce Huawei's smart production capacity. Although Hon Hai did not respond to relevant Huawei news, Hon Hai's revenue figures can also prove that the impact of Huawei's ban on sales does not seem to be that great.
Let’s analyze Hon Hai’s revenue combination again. Consumer products even ranked first in the traditional off-season for several months. In other words, non-Apple phones have been able to become one of the mainstays to sustain Hon Hai’s revenue in the off-season when iPhone sales are low.
Another key product is the communication products related to 5G. As we all know, although Huawei has been banned from selling in the United States, compared with the United States, other countries are still actively planning 5G and have not banned the adoption of Huawei. This also allows Hon Hai, as the foundry of Huawei 5G communication products, to continue to benefit.
stake in Sharp expands component layout Hon Hai is Apple
Compared with other major electronic foundries, Hon Hai's biggest advantage is the integration of upstream and downstream. Apart from semiconductors, Hon Hai still has no other competitor to match the assembly and related components. Industry insiders pointed out that the current situation is very obvious. After Hon Hai acquired stake in Sharp in 2016, Sharp, including panels and other components, also made up for the missing parts of Hon Hai, which allowed Hon Hai to get rid of the excessive fluctuations in the off-peak season caused by Apple after two years of adjustment.
However, industry insiders also believe that the global market share of Apple iPhone is about 20%. However, no matter how much Apple raises the price, the market share of basically has not changed much and is still quite stable. However, while increasing the price, it also increases the OEM costs of assembly plants, which is also the key to the increase in Hon Hai's revenue. The physical condition adjustments such as
actually allow Hon Hai’s management team to alternate smoothly. The market was originally worried that after Hon Hai’s founder , Terry Gou , would have a pain period after retreating to the second line. However, as of now, Terry Gou has laid the foundation for Hon Hai’s physical condition, allowing subsequent succession to effectively shorten the running-in period, and preventing the company’s operations from being affected by the changes in the top-level.
Now with Apple , it will release a new phone. Industry insiders expect that Apple will be explosive next. Although Apple products will be subject to tariffs by the United States on December 15, it can be expected that from September to November, with the support of non-Apple stable and new phones in Apple , Hon Hai's monthly revenue performance will deliver more amazing numbers than the same period last year.
Image source: Xin Technology
(Proofreading/holly)
