Hon Hai forecasts to double annual revenue over the next decade

Nathan Andrada – Fourth Estate Cooperative Contributor

Taipei, Taiwan (4E) – Taiwan’s Hon Hai Precision Industry Co. expects to more than double its annual revenue to 10tn New Taiwan dollars over the next 10 years as the company boosts its effort to diversify outside its low-margin manufacturing.

Chairman Terry Gou said during the opening of the contract manufacturer’s charity festival in Taipei on Sunday that the firm’s growth in the next decade will be driven by e-commerce, 4G mobile services, cloud computing and other high-tech technologies.

Hon Hai, the world’s largest contract electronics maker, celebrates its 40th anniversary this year. The company is known for assembling iPhones and iPads for Apple Inc., from which it accounts about 40 percent of its revenue.

The company that is also known as Foxconn Technology Group announced in December that its Hong Kong-listed subsidiary, FIH Mobile Ltd, has signed a five-year deal with BlackBerry to make new smartphone models.

The company has been aggressively looking for new avenues of growth amid a slowdown in revenue from contract manufacturing, expanding into telecom services and software development. It has also pushed into the retail market by selling mobile accessories.

Hon Hai reported that revenue last year climbed 1.3 percent to 3.95tn New Taiwan dollars ($131bn) from a year ago. The company is set to report earnings for the full year and fourth quarter in March.

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