Apple Inc. AAPL supplier Hon Hai Precision Industry Co., Ltd. - ADR HNHPF, aka Foxconn, reported Tuesday strong revenue growth for the quarter ended March.
What Happened: Foxconn's first-quarter revenues were at 1.34 trillion new Taiwanese dollars ($47.05 billion), up 44.5% year-over-year, the company said in a statement. However, this represented a 33% decline from the seasonally strong fourth quarter.
Revenues for March climbed 9.78% year-over-year to 441.12 billion new Taiwanese dollars. Foxconn's strong first-quarter numbers is an offshoot of strong demand for iPhones, gaming consoles and servers, according to Bloomberg.
Apple is a major customer for the contract electronics manufacturer, which assembles about 60-70% of iPhones.
Related Link: Apple Supplier Foxconn Is Exploring North American EV Manufacturing Sites
Why It's Important: Foxconn's first-quarter top-line growth suggests continuing iPhone momentum for Apple. The tech giant began witnessing a supercycle with the launch of four variants of its 5G-enabled iPhones in late 2020.
Citing Asia supply checks, Wedbush analyst Daniel Ives said iPhone builds for the March quarter is in the 56 million to 62 million range. The company is on track to report record annual iPhone shipments of over 250 million units in 2021, ahead of the previous record of 231 million units reported in 2015, he added.
The chip shortage, which has pervaded through sectors, could be a pushback. Foxconn hinted in late March that silicon shortages could impact 10% of its shipments and the chip crunch could last at least through the second quarter of 2022.
APPL Price Action: Apple shares were edging up 0.48% to $126.51 on Tuesday afternoon.
Related Link: How to Buy Foxconn Stock in the U.S.
(Photo: Shiwa ID via Unsplash)
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