IPhone assembler Hon Hai Precision Industry Co. reported a 44% climb on its first-quarter revenue driven by demand for new 5G devices and other gadgets, according to Bloomberg.
- The Taiwanese manufacturer said first-quarter revenues rose to NT$1.34 trillion ($47 billion), in line with analyst estimates. Sales in March jumped to NT$441.2 billion.
- The figures suggest demand for iPhones, gaming consoles, and servers as consumers snatch up devices for remote work, home-schooling, and entertainment needs amid lockdowns designed to curb the spread of COVID-19. Companies are also spending on technology and expanding data-center infrastructure to improve online experiences.
- In March, Hon Hai warned that component shortages could persist until 2022 and affect under a tenth of its shipments amid a global chip shortage.
- Hon Hai shares gained 57% in the last six months, as the company announced plans to venture into the electric vehicle business. It inked manufacturing deals with Byton Ltd. and Fisker Inc.
- Analysts expect Hon Hai’s annual shipments of electric vehicles to reach 1.1 million units or around 10% of global share by 2025; and $35 billion in revenue by that year.