iPhone Assembler Hon Hai Expects ‘Unprecedented’ First Quarter

(Bloomberg) — Key iPhone assembler Hon Hai Precision Industry Co. may achieve an “unprecedented” performance in the first quarter, according to Chairman Young Liu.

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“Our performance in the first quarter may surpass how we did in the past few years, and it is likely that some staff at key sites will only get two days off during the lunar new year holidays,” Liu said in prepared remarks for the company’s annual party on Sunday.

Manufacturers around the world are racing to build up inventory out of the fear that outbreaks of the omicron variant and other uncertainties could further disrupt their supply chain. Earlier this month, Taiwan Semiconductor Manufacturing Co. Chief Executive Officer C.C. Wei told analysts he expects companies to maintain a higher level of inventory compared to the past to ensure supply security.

Hon Hai, the flagship unit of Foxconn Technology Group, runs most of its manufacturing operations in China, which will shut most offices and businesses for seven days starting Jan. 31 for the lunar new year.

In addition to being a key manufacturing partner to Apple Inc., the Taiwanese company also makes gadgets for other global brands including Dell Technologies Inc., Sony Group Corp. and Nintendo Co.