Major Apple supplier Hon Hai of Taiwan posts 20 percent slump in December sales

Reuters News
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Posted: Jan 08, 2016 5:43 AM

TAIPEI (Reuters) - Taiwan's Hon Hai Precision Industry Co, which assembles the bulk of Apple Inc's latest smartphones, saw its December revenues slump by a fifth and full-year sales miss expectations on Friday.

The results come as concerns are growing about slowing shipments of the latest iPhone 6S models, which Hon Hai assembles, during the non-peak first quarter, although analysts say past iPhone cycles have been similar where the interim update on a model edition tends to see slower sales.

Hon Hai, which goes by the trade name of Foxconn, reported a December revenue of T$409.65 billion ($12.30 billion), down just over 20 percent both compared to a year ago and from November.

For the full 2015 year, Hon Hai's revenue totaled T$4.48 trillion, up 6.42 percent, but below analysts' expectations for an annual gain of 7 percent, according to the average of forecasts of Thomson Reuters Starmine.

Hon Hai's revenue in 2014 rose 6.53 percent.

Samsung Electronics Co Ltd said on Friday its fourth-quarter operating profit likely rose 15 percent from a year earlier, missing expectations and fuelling concerns the tech industry may be in for a tough year of slack gadget sales.

Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker, said on Friday that its December sales fell both on month and on year. The annual growth in sales for 2015 more than halved from the rapid pace of 2014, when the new iPhone 6 models were first launched.

(Reporting by J.R. Wu; Editing by Muralikumar Anantharaman)