Hon Hai’s Uncertainty Rating Revised to Medium as Apple Business More Resilient Than Expected

Apple, which has established itself as a consumer electronics behemoth over the past decade, has propelled Hon Hai into the world’s largest contract manufacturer. Despite its entrenched position in Apple, which accounts for 50% of the group’s revenue, Hon Hai is faced with increasing competition in the traditional assembly business at a time when smartphone demand has matured. As a result, its returns on invested capital have fallen to 12.9% in 2020 from 17.3% in 2009.