TAIPEI, April 10 Hon Hai Precision Industry Co
Ltd, the main manufacturer of Apple Inc products
, posted a 19 percent decline in sales in the first
quarter compared with a year earlier, hurt by disappointing
demand for the iPhone.
From January to March, Hon Hai's sales totalled T$808.97
billion ($26.96 billion), down from T$988.34 billion in the
fourth quarter and T$1 trillion in the first quarter last year.
"A quarterly decline was expected, but not a yearly
decline," said KGI Securities analyst Ming-chi Kuo. "This shows
that Hon Hai's revenue depends too much on Apple, and iPhone
orders corrected more than expected."
Kao expected the Taiwanese contract manufacturer to post
flat sales in the second quarter compared with the first, adding
that its net profit is also likely to come under pressure in the
first half of this year.
Hon Hai draws an estimated 60 to 70 percent of its revenue
assembling Apple's iPhones and iPads, and carrying out other
work for the California-based company.
Apple missed Wall Street's revenue forecast for the December
quarter. Disappointing holiday sales reinforced fears it is
losing its dominance in smartphones.
Shares in Hon Hai edged up 0.12 percent on Wednesday, versus
a 0.31 rise in broader market