Hon Hai to Challenge NT$2.5 Trillion in Consolidated Sales in 2010

Taipei, Jan. 7, 2010 (CENS)--Thanks to the imminent introduction of the fourth-generation cellphones by Apple Computer Inc., including iPhone N90 and N99, Hon Hai Precision Industry Co. will challenge NT$2.5 trillion (US$78.125 billion at US$1:NT$32) in consolidated sales in 2010.

The Apple's iPhone N90 and N99 will be introduced sometime in the second quarter of 2010. As one of Apple's major contract manufacturers, Hon Hai is expected to ship 30 million units of iPhone N90 and N99 a year.

A foreign institutional investor said Hon Hai has been involved in contract manufacture of some newly launched products, including Sony Corp.'s LCD (liquid crystal display) TVs, Hewlett Packard Corp.'s desk-top computers, Apple Computer's flat-panel computers and fourth-generation iPhones.

Different from the first to the third generation of iPhones which saw minimal adjustment in functions, the fourth-generation iPhones have been redesigned in appearance and system upgrading. As a result, the demand for system upgrading by consumers will be on the rise.

According to an estimate made by Goldman Sachs Asia, Hon Hai will see consolidated sales reach NT$2.47 trillion (US$77.18 billion) and NT$2.96 trillion (US$92.5 billion) in 2010 and 2011, respectively. The anticipated 2010 consolidated sales will be the first time for Hon Hai to challenge NT$2.5 trillion (US$78.125 billion). It is expected Hon Hai will be able to score NT$10.28 (US$0.32) and NT$12.01 (US$0.37) in earnings per share in 2010 and 2011, respectively.