* Citi sees Hon Hai sales up about 30 pct in 2011
* Stock up 1.3 pct, beating TAIEX's gain
TAIPEI, Oct 13 Hon Hai (2317.TW), the world's
largest electronic parts maker, will raise prices from October
for some clients, including Apple (AAPL.O), according to a
Citibank analyst, a Taiwan newspaper reported on Wednesday.
Citibank analyst Chang Kaiwei said Hon Hai Precision
Industry Co would also raise prices for Nokia NOK1V.HE,
Microsoft (MSFT.O) and Sony Ericsson (ERICb.ST) (6758.T),
helping to push up its fourth quarter profit, according to the
Hon Hai reported stronger September sales last week
[ID:nTOE697023], which Citi said was mainly driven by rising
shipments of Apple's iPhone.
Many top tech firms typically do their own design work, but
outsource manufacturing to contract manufacturers in Taiwan
such as Hon Hai, freeing them from having to manage
labour-intensive production lines.
Citi forecast Hon Hai's sales would grow close to 30
percent in 2011 from 2010 even though Hon Hai has said the
group will halve its long-term sales growth target to 15
percent annually. [ID:nTOE68500P]
Neither Hon Hai or the Citibank analyst were immediately
available for comment.
At 0310 GMT, Hon Hai shares were up 1.33 percent,
outperforming the main TAIEX index's .TWII 0.22 percent rise.
Earlier this year, Foxconn International Holdings Ltd
(2038.HK), said it will seek higher prices from clients to help
offset wage increases at a plant in southern China that has
been hit by a series of suicides. [ID:nTOE65701W]
Hon Hai and the Hong Kong-based Foxconn unit have struggled
this year with the fallout from a series of suicides that
focused international attention on labour practices in the
The issues prompted the company to raise wages and were a
trigger for a series of labour disputes over working conditions
in a region dubbed the world's workshop. Hon Hai employs more
than 900,000 people in China.