Hon Hai Surpasses 2023 Sales Milestone with Strong November Performance
Hon Hai Precision Industry Co., the renowned Taiwan-based manufacturing giant and key iPhone assembler, has reported remarkable revenue figures for November 2024. The company not only posted its second-highest sales ever for the month but also surpassed its total revenue from 2023 in just the first 11 months of this year.
In a statement released on Thursday, Hon Hai revealed that it achieved consolidated sales of NT$672.59 billion (approximately US$20.76 billion) in November. This represents a 3.47% year-on-year increase, although it was 16.34% lower than October 2024’s sales performance. Despite the month-over-month dip, the November sales figure stands as the second-highest ever recorded for the month of November, second only to NT$681.4 billion in November 2020.
This solid performance reflects Hon Hai’s ability to maintain its growth trajectory, driven by strong demand across various sectors, including artificial intelligence (AI) servers, cloud computing products, and automotive components. Furthermore, the company has managed to overcome challenges in the consumer electronics sector, particularly smartphones.
Record-Breaking Year-to-Date Sales
The performance in November further bolstered Hon Hai’s year-to-date results. For the first 11 months of 2024, Hon Hai posted consolidated sales of NT$6.21 trillion, an 8.87% increase compared to the same period in 2023. This marks a notable achievement as it surpasses the NT$6.16 trillion in total sales the company reported for all of 2023.
Despite a global slowdown in demand for smart consumer electronics, Hon Hai continues to see robust sales in emerging tech markets. The company’s ability to adapt to the increasing demand for AI-related products and cloud-based computing solutions has positioned it as a major player in these fast-growing sectors.
Key Growth Areas and Challenges
Hon Hai’s November sales benefited from several strong growth areas:
- AI and Cloud Computing: There was a notable increase in demand for artificial intelligence servers and other cloud-based technologies, which helped offset weaker performance in other product categories.
- Automotive Components: As the electric vehicle (EV) and autonomous driving sectors continue to grow, Hon Hai has seen an uptick in shipments of automotive parts and related components.
- Computing Products: The company’s new computing product offerings also contributed to the strong sales figures.
However, Hon Hai also faced challenges, particularly a decline in demand for smart consumer electronics. This sector, which traditionally generates significant revenue for the company, showed signs of weakness, especially in the latter part of the year.
Largan Precision Reports Mixed Performance
Alongside Hon Hai, other major Apple suppliers also reported mixed sales performance in November. Largan Precision Co., a leading maker of smartphone camera lenses, saw its consolidated sales for the first 11 months of the year increase by 22% year-on-year, reaching NT$53.81 billion.
However, the company reported an 11% drop in its November sales compared to the same month in 2023, with revenues of NT$6.01 billion. Largan attributed this decline to clients scaling back their orders as caution prevailed in the fourth quarter.
Largan’s focus on higher-margin products, such as lenses above 20 megapixels, helped to offset some of the challenges. These lenses accounted for 20-30% of the company’s sales, with lenses between 10 and 20 megapixels making up 70-80%. Despite the sales drop, the company remains well-positioned in the competitive smartphone component market.
Summary of Key Figures
Here is a summary of the financial performance of Hon Hai and Largan Precision for November 2024 and the first 11 months of the year:
| Company | November 2024 Sales (NT$ Billion) | YoY Change (November 2024) | YTD Sales (2024) (NT$ Trillion) | YTD Sales YoY Growth (2024) |
|---|---|---|---|---|
| Hon Hai | 672.59 | +3.47% | 6.21 | +8.87% |
| Largan Precision | 6.01 | -11% | 53.81 | +22% |
FAQ
Q1: What were Hon Hai’s November sales figures?
A: Hon Hai posted consolidated sales of NT$672.59 billion in November 2024, marking a 3.47% increase compared to November 2023.
Q2: How did Hon Hai’s performance in 2024 compare to 2023?
A: Hon Hai surpassed its total revenue for 2023 within the first 11 months of 2024, with a total of NT$6.21 trillion in sales, up 8.87% from the previous year.
Q3: What sectors drove Hon Hai’s strong sales in November?
A: The strongest contributors to Hon Hai’s sales were AI servers, cloud computing products, and automotive components, despite a slowdown in smart consumer electronics.
Q4: How did Largan Precision perform in November 2024?
A: Largan reported a decline of 11% in its November sales compared to the same month in 2023, with sales of NT$6.01 billion, but it saw a 22% year-on-year increase in its year-to-date sales.
Q5: What impact did AI and cloud computing products have on Hon Hai’s performance?
A: Hon Hai benefited from strong global demand for AI and cloud-based products, which helped to offset weaker demand in other areas, particularly in the smartphone sector.
