IPhone Maker Hon Hai Again Warns Components Crunch Worsening
- Supply shortages will be more severe in 2Q than 1Q: Liu
- Hon Hai shares are down 20% from March high as crunch worsens
Photographer: Sam Yeh/AFP/Getty Images
Hon Hai Precision Industry Co. warned that the global supply crunch that has hit the consumer electronics and automaking industries will worsen this quarter, after it weathered component shortages to post better-than-expected quarterly profits.
The world’s largest contract electronics manufacturer and main assembler of iPhones reported net income of NT$28.2 billion($1 billion) in the three months ended March, beating the average NT$24.4 billion of adjusted analyst estimates. Revenue in the second quarter will likely be steady from the previous three months, as growth in its consumer electronics and components divisions is countered by a slowdown in its server and computer divisions, in part because of parts shortages, the corporation said Friday.