iPhone 6 spurs Hon Hai hiring spree

iPhone 6 spurs Hon Hai hiring spree

TAIPEI - Hon Hai Precision Industry (鴻海精密工業) is reportedly conducting a massive staff recruitment effort at its plants in Shenzhen and Zhengzhou for iPhone 6 production, according to local news reports.

Strong demand for Apple's iPhone 6 and iPhone 6 Plus has instigated large-scale hiring at Hon Hai Precision Industry in mainland China, Digitimes cited sources from the upstream supply chain to report.

Apple Flies Off Shelves

Apple sold over 10 million iPhone 6 and 6 Plus devices in their first week and is expected to continue to see strong sales in the second half of 2014.

To meet Apple's plans to launch its new smartphones in 115 countries and regions worldwide by the end of 2014, Hon Hai Precision Industry has been aggressively recruiting workers to help assemble iPhone 6 devices. However, Hon Hai Precision Industry declined to comment about the news.

Hon Hai Precision Industry has focused working on contracts for Apple, having turned out about 80 per cent of iPhone 6 output.

Hon Hai Precision Industry controls 80 per cent of the iPhone 6 orders, with the remainder taken by Pegatron Corporation, while production of the iPhone 6 Plus is fully handled by Hon Hai Precision Industry, according to Wang Yang (王陽), director of China research at consultancy IHS iSuppli.

Orders for both the iPhone 6 and the iPhone 6 Plus are expected to reach 80 million units by the end of this year, and 200 million next year, the report said.

Boosted by the iPhone 6 honeymoon sales, Hon Hai's revenues should climb month by month from now on, probably hitting a monthly peak in November or December, said Wang.

Share Price Down 1.6 per cent

Hon Hai shares lost NT$1.6 (S$0.067), or 1.6 per cent, to close at NT$97 on Tuesday, with 53.44 million shares trading hands.

Apple recently announced that on the first day of the debut sales for iPhone 6 and iPhone 6 Plus, it had received orders of four million units, setting a new record for its first-day sales of any iPhone model.

Apple earlier said market demand for the iPhone has exceeded its originally scheduled supply capacity, adding Apple remains confident of its inventories of some 70-80 million iPhone 6 and iPhone 6 Plus units.

In 2012, Apple got orders of two million for the iPhone 5 on the first day of sales, while it didn't unveil the first-day sales of the iPhone 5S and the iPhone 5C last year.

Concurrently, Hon Hai Precision Industry yesterday doled out a cash dividend of NT$1.8 per share on Tuesday, according to the Central News Agency.

Of the more than NT$23.63 billion in cash dividends to be distributed, NT$2.92 billion will end up in the pockets of Hon Hai Chairman Terry Gou (郭台銘), who holds more than 1.62 billion shares of the company.

Lu Fan-ming (呂芳銘), chairman of Taiwanese mobile carrier Asia Pacific Telecom Co. (亞太電信), which recently acquired Hon Hai's Amit Microsystems Corp. (國碁電子) in a share-swap deal, holds 6.45 million shares of Hon Hai and will receive more than NT$11.61 million.

Hon Hai is issuing a total dividend of NT$3 per share this year, of which NT$1.8 is in cash and the rest in stock. The stock dividends were valued at more than NT$15.75 billion.

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