Foxconn and Pegatron to see weak 2Q15
Foxconn Electronics (Hon Hai Precision Industry) and Pegatron Technology both had strong financial performances in the first quarter, but results are expected to turn weak in the second quarter and then return growth in the second half with new devices.
Foxconn achieved consolidated revenues of NT$1.14 trillion (US$37.44 billion) for the first quarter and net profits of NT$30.39 billion, up significantly by 55.48% on year, while Pegatron had consolidated revenues of NT$274.26 billion and net profits of NT$7.22 billion for the first quarter.
As demand for Apple’s iPhone 6/6 Plus is approaching saturation, most market watchers predict Foxconn’s second-quarter revenues will weaken. With Apple expected to release new smartphones in the second half, the maker is expected to regain its performance.
Pegatron is also expected to experience a similar trend and the second quarter will be the bottom of its revenue performance in 2015.
In the second quarter, Pegatron is expected to achieve a sequential shipment growth of 15-20% for its notebook business. The company’s desktop and motherboard shipments will stay flat from a quarter ago, but non-PC businesses are expected to see sequential shipment declines.