Seeking Alpha

Richard Davenport's  Instablog

Richard Davenport
Send Message
Richard Davenport provides differentiated research utilizing supply chain analysis, as well as more traditional methods. He is a former sell-side analyst at Citigroup. In 2005 he founded Connexiti LLC, a market-leading provider of supply chain data, research, and analytics. While at Connexiti,... More
My blog:
connexiti.com
  • Hon Hai: Normal Seasonality Neutral To Positive For Apple 0 comments
    Aug 10, 2012 8:39 AM | about stocks: AAPL

    Hon Hai (2317.TW), the world's largest contract manufacturer and Apple's (AAPL) biggest supplier, has reported July consolidated revenues of NT$248.69B (US$8.30B). The +5.01% M/M increase is essentially in line with a 10-year average of +5.80% (σ=9.89%).

    Hon Hai receives >40% of its revenues from AAPL, and accounts for a similarly large percentage of AAPL's COGS. As such, it is an important indicator of AAPL's revenue trends, as it manufactures the bulk of its iPhones and iPads, as well as Macs.

    Cirrus Logic (CRUS) recently guided calendar Q3 revenues well above Street expectations, which suggested a new AAPL product (such as the much-rumored iPad mini) on the horizon, as CRUS provides the audio chip for all AAPL hardware.

    Hon Hai's results do not yet indicate a significant uptick in AAPL's business, but the normal seasonal strength in light of other deteriorating markets may suggest some better-than-seasonal AAPL strength.

    Typical seasonality for Hon Hai's August quarter would be +3.92%, followed by September at +17.71%; we'll continue to monitor the supply chain data as it becomes available.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: AAPL
Back To Richard Davenport's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.