Foxconn said that its consumer electronics division witnessed the strongest sales growth on a year-on-year basis
Taiwanese contract electronics manufacturer Foxconn has reported an all-time high second-quarter sales record of about USD 48 billion in the April-June quarter, increasing by about 20 per cent of the same last year.
The Apple supplier’s sales growth can be attributed to the surge in demand for electronic devices as schools and offices continue to be held from home amidst the ongoing pandemic, said analysts to CNA.
Foxconn said that its consumer electronics division witnessed the strongest sales growth on a year-on-year basis, which was followed by the electronics component division, the cloud technology-based product division and the computer and related goods division.
On a quarter-on-quarter basis, its electronics component division had the best performance ahead of the cloud technology-based product division, computer and related products division, and the consumer electronics division, said Hon Hai, known as Foxconn internationally.
In June alone, Foxconn’s consolidated sales rose 11.4 per cent from a year earlier, the highest ever for the month in the company’s history.
The year-on-year growth reflected higher demand for emerging applications such as high-end servers and small base stations for 5G services.
Analysts said the company’s sales should benefit from peak season effects in the second half of this year, as Apple is expected to launch the next generation of iPhones in September. Apple accounts for more than 40 percent of the company’s sales, according to market estimates.
The company also has its eyes set on entering the electric vehicles business and is already ramping efforts for the same.
Foxconn Chairman Liu Young-way has said the company will intensify its efforts in EV development and has set a goal of boosting the company’s gross margin to 10 percent by 2025.
