Benzinga | Mar 5, 2021 10:19AM EST

IPhone Demand Drives Q1 Growth For Apple Supplier Foxconn

Apple Inc. (NASDAQ:AAPL) supplier Hon Hai Precision Industry Co., Ltd. (OTC:HNHPF) is riding on the momentum imparted by the strong uptake of the latest iPhone iteration as well as surging demand for consumer electronics.

What Happened: Hon Hai, popularly known as Foxconn, said it expects first-quarter revenues to increase more than 15% year-over-year, Reuters reported, citing a statement from the company.

In the fourth quarter, the company reported 15.5% year-over-year revenue growth to 2 trillion New Taiwanese dollars.

Revenues primarily include contributions from its consumer electronics business, comprising smartphones and smartwatches.

Related Link: Fiat Chrysler In Talks With Apple Supplier Foxconn To Make EVs In China

Revenues from cloud and computing products are expected to rise about 10%, the company said.

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In a statement, Foxconn said Thursday its consolidated revenues for February increased 84.81% year-over-year to 401.89 billion New Taiwanese dollars ($14.44 billion). Month-over-month, revenues were down 19.66%.

Cumulative revenues for the Jan-Feb period were at 902.11 billion New Taiwanese dollars, up 55% from the same period last year.

Why It's Important: Foxconn's performance can be considered a leading indicator for iPhone demand, and therefore its positive outlook for the first quarter bodes well for Apple. The tech giant is expected to report another blockbuster quarter following a strong showing in its seasonally strong December quarter.

Foxconn has recently shifted its focus to the EV sector and has struck multiple partnerships with the likes of Fisker Inc. (NASDAQ:FSR) and Geely Automobile Holdings Limited (OTC:GELYF).

Related Link: Potential Partners For An Apple Car Grow In Number, With Nissan The Latest To Express Interest

(Photo: Shiwa ID via Unsplash)