Posts Tagged ‘Terry Gou’


appelstore535iPhonAsia 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. 

Hon Hai aims for 30 pct sales growth in 2009

picture-16Reporting by Kelvin Soh and Roger Tung; Editing by Jacqueline Wong

  • Hon Hai aims for 30 pct sales growth in 2009 – chairman
  • Bets on demand from new electronics products
  • Stock gains 0.9 percent but lags big board (Recasts with details)

foxconn_270x228TAIPEI, 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. 

Terry Gou

Terry Gou

“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.


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Lin Zhi Ling tangos with Terry Guo

Lin Zhi Ling tangos with Terry Guo

Update – April 15, 2009: The article below implies Hon Hai will cut staff … not so. Read more > HERE

iPhonAsia commment: In June we heard reports (Source: China Knowledge) that Foxconn International Holdings Ltd (Hon Hai), was planning to move its major production facilities to low-cost regions such as Taiyuan and  Langfang. No further word in the media. Anyone have an update?

Hon Hai To Cut 20,000 Staff Globally

picture-110According to Terry Guo, chairman of the Taiwan-based Hon Hai Precision Industry Company, the technology manufacturing group will implement a global staff cut plan and about 3-5% of its employees will lose their jobs.


As the parent company of Foxconn, rumors about layoffs in Hon Hai already started when Foxconn announced its plans to cut staff. The group’s reduction will happen globally and Guo made the statements during a donation ceremony without giving the specific number for the layoff.

It is estimated that Hon Hai has over 400,000 employees worldwide. By this number, Hon Hai will cut 12,000 to 20,000 jobs around the world.

In November 2008, Hon Hai’s Hong Kong-listed handset and camera manufacturing unit Foxconn International Holdings announced plans to control costs by redeploying 5% of its frontline workers and 10% of management staff in Shenzhen due to the economic slowdown.

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iPhonAsia Comment: Duh!

Reuters is also quoting China Mobile CEO Wang Jianzhou as saying today (March 4, ’09) that China Mobile would “continue to talk to Apple” and he would not comment on the discussions between China Unicom and Apple. The Apple and China Mobile story is a long and winding road … If I can find a few free hours over the weekend I’ll offer up my take.


China Unicom in talks to sell Apple iPhone in China

BEIJING, March 4 (Reuters) – China Unicom (Hong Kong) Ltd chairman Chang Xiaobing said on Wednesday the company was in talks with Apple Inc. to introduce the iPhone to China.

“We are in talks with many handset suppliers, including Apple,” the chairman told reporters.

Its competitor China Mobile said last year that it was negotiating with Apple on selling the iPhone in China. (Reporting by Joanne Chiu; Editing by Jonathan Hopfner)

Taiwan’s Hon Hai increases workforce in China

TAIPEI, March 4 (Reuters) – Taiwan electronics giant Hon Hai said on Wednesday it had recently increased its number of employees in China by 5 percent despite the global downturn.

“In the short term, things are not as bad as they are made out to be,” Chairman Terry Gou said at a signing ceremony between the company and IBM on using green technology. Gou did not specify when the company had increased its China workforce.

Hon Hai is a contract manufacturer that makes some of the world’s most famous gadgets, including Apple’s iPhone, Nokia cellphones and Nintendo’s Wii game console.

(Reporting by Kelvin Soh; Editing by Jonathan Hopfner)

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