Hon Hai Q1 sales down as iPhone disappoints

8220;A quarterly decline was expected,but not a yearly decline,8221; said KGI Securities analyst Ming-chi Kuo. 8220;This shows that Hon Hai8217;s revenue depends too much on Apple,and iPhone orders corrected more than expected.8221;

Kao expected the Taiwanese contract manufacturer to post flat sales in the second quarter compared with the first,adding that its net profit is also likely to come under pressure in the first half of this year.

Hon Hai draws an estimated 60 to 70 percent of its revenue assembling Apple8217;s iPhones and iPads,and carrying out other work for the California-based company.

Apple missed Wall Street8217;s revenue forecast for the December quarter. Disappointing holiday sales reinforced fears it is losing its dominance in smartphones.

Shares in Hon Hai edged up 0.12 percent on Wednesday,versus a 0.31 rise in broader market.