iPhonAsia comment: Well lookie here … Hon Hai Precision Industry (a.k.a. Foxconn) is a bit more optimistic about the immediate future than many in its electronics manufacturer peer group. Where will this growth come from? Digital cameras? Nintendo Wii? Perhaps a bit. But to project growth at 30% in the teeth of a recession, suggests that Hon Hai’s Terry Gou is very optimistic over demand for Apple’s iPhones (yes plural), iPods, Macs and devices to be named later.
Reporting by Kelvin Soh and Roger Tung; Editing by Jacqueline Wong
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TAIPEI, April 16 (Reuters) – Taiwan electronics parts giant Hon Hai said on Thursday it was targeting a 30 percent rise in sales this year, better than market expectations as it bets on growth of some new electronics products.
Hon Hai, a contract maker of some of the world’s most famous gadgets including Apple’s (AAPL) iPhone and Nintendo’s Wii, expects to tap rising demand for new gadgets, including digital cameras, electronic reading devices and other wireless products.
Hon Hai Precision Industry was considering boosting its capacity in Europe to handle an expected rise in demand in the next several years, the chief of its Czech unit said on Wednesday.
“I gave a target of 30 percent sales growth for each business department,” Hon Hai Chairman Terry Gou said during the company’s annual general meeting. But Gou said this year’s target would be very challenging.
The pace would be faster than a forecast 23 percent rise made by Reuters Estimates, which put Hon Hai’s 2009 sales at T$1.81 trillion ($54 billion), up from last year’s T$1.47 trillion.
Hon Hai shares closed up 0.9 percent on Thursday, lagging the main TAIEX index’s 2.1 percent jump.
In the longer term, Gou said his company would also diversify into design and services management to ensure steady growth.
“Many clients are asking us to provide services from design, manufacturing to distribution,” Gou said.
Hon Hai had increased its China workforce by 5 percent despite the global downturn, and would be diversifying its product line to include software services.